Volvo plans to double retail network in China, will soon offer luxury cars

Article by Christian Andrei, on May 2, 2012

Volvo intends to increase its retail network in China to almost double while expanding to new luxury segments. This increases its model range almost three times. It also aims to boost engineering and technology capability in the region. Senior Vice President Freeman Shen at Volvo's China operation commented that the expansion is an essential part of a plan to shell out at most $11 billion worldwide by 2016.

Shen also stated that the company considers China to be "a very important home market" and as their "second home." Zhejiang Geely Holding Group bought Volvo in 2010 for $1.7 billion from Ford Motor Co.

At present, China is the third biggest market of Volvo, Shen further revealed. Volvo intends to put 200,000 vehicles for sale in the country by 2020. This is far greater than the 47,150 units achieved by the company last year.

Within 10 years, Volvo aims to increase sales by 100% to 800,000 vehicles worldwide. In an effort to grow in China, the automaker is ramping up its business in the nation. By 2017, the retail network of Volvo in China will reach 220 dealers from 125 in 2011.

Shen noted that they see "a lot of" huge retail companies from the United States. However, he did not mention these specific U.S. retailers. 

Additionally, Volvo has ambitious plans for its engineering and product capability in the Chinese nation. It currently sells six models in the country, but intends to launch 10 new models within six years.

According to a Bloomberg report, the upcoming vehicle models are larger and more high-end. These new models also include small and medium vehicles like the V40 hatchback, as Bloomberg reported. [source: Autonews]

Topics: volvo, china

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

It looks like Porsche will be very busy throughout 2017 as it prepares for the eventual launch of its two new models this year – the 2017 Porsche 911 GT3...
by - January 23, 2017
Volkswagen Group’s dieselgate saga continues, but it appears the German company would be able to get out of trouble, but it would not be unscathed. This development comes as Volkswagen...
by - January 22, 2017
When a car has been in the market for nearly six years, it loses some of its luster and its customers tend to go for the all-new model with a...
by - January 22, 2017
Remember Zenos Cars, a British carmaker that specializes in designing and building lightweight and high-performance sports cars? If you are wondering how the company is faring with their E10 lightweight...
by - January 21, 2017
Mercedes-Benz has revealed that in 2017, its series 124 coupé will be celebrating its 30th anniversary. While this itself is a significant event, it will also mean that this model...
by - January 21, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries