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Evidence that Volvocar has started seeing increasing sales in China

Tuesday, 04 June 2013
There is increased evidence that his year, Volvocars has started seeing increased car sales in China. According to reports, sales grew by 27 percent compared with the same period last year.

The Sales figures unveiled by Volvo management in Chengdu the day before the first Volvo plant in China will be on display for the media. Volvo reported decline in sales last year, with 5,000 to 42,000 items sold in the Chinese market.

Volvo factory production in Gothenburg - image/scancomark.com

Volvo has reportedly taken a step forward in making its name in its now largest market or what is known here as its second home, China, where the company had major problems in the past year. China is the world's largest auto market, at this moment and it is expected that the market will even grow further.

This year though the trend has reversed. During the first five months of this year, the company reports 27 percent increase in sales. Volvo cars until May ending sold 22,905 cars in China, which means that the company is one of the foreign brands that is seeing significant increase in performance in the Chinese market. This also supports the view of some of its officials who countered reports recently which suggested that Volvo was struggling in China.

According to Volvo management, the sales lift was also as a result that the company made a restart on its business plan in China. Last autumn a reorganization took place in its Chinese operation which means that two of its top leaders had to go.

"The ambitions were a bit too high compared to what we could deliver and we have taken action on this. But now we are growing faster than the market average," says Lars Danielson who last fall took over as general manager of Volvo's operations in China. We see that 2013 will be a good year and we aim to increase sales by over 20 percent.

Earlier, Volvo had aimed to sell 200,000 cars in China in 2015, something the company could not achieve. Now the goal is to achieve the target by 2020.

According to Lars Danielson "we have a strong brand and now this year we have our first factory in place in China where we produce ourselves. And when compared with our competitors, we can see that local production is essential to be competitive here in China."

The new Sales Manager, Fu Qiang believes that Volvo's success is due to the change in focus with more direction given to particular best sellers such as the XC 60 and S 60. There they have achieved great success by marketing added features such as in–car air purification system. This has come at a great time when big cities in China are being paralysed by air pollution.

Other drivers of improved sales performance has to do with improved relationship with dealers, according to Fu Qiang. This is one reason identified as why things went so bad last year.
by Scancomark.com Team

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