Volvo Cars India is forecasting a dip in its 2019 sales growth due to the upcoming general elections and capacity constraints, among other things, said CEO Charles Frump.
“In the last two years, we had posted 28% and 30% growth. This year, we are tapering it out to single-digit due to the general elections, credit tightening, sluggish growth in four-wheelers and capacity constraints,” Mr. Frump said. “The year 2019 is going to be a tough year,” he added.
“While the industry clocked 5% growth during 2018, we had grown faster. This year too, we will outpace the industry, but not like in the previous years. However, I am keeping it at 5% for the entire year,” Mr. Frump said.
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During the calendar year 2017 and 2018, Volvo had sold more than 2,029 cars and 2,638 cars respectively.
Low penetration
India had a very low level of penetration in the luxury car segment, he said, and added that the country accounted for only 1% of the total global share compared with China (7%), Sweden (17%) and Germany (20%).
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Lauding the Centre’s move in lowering the customs duty on electric vehicle parts, he said the firm would be rolling out plug-in hybrid cars assembled in Bengaluru, by end 2019.
“Volvo’s global vision is to have one million electrified cars on road by 2025. In India, electric vehicles will happen faster than other places,” he said.
The car maker had made significant investment in development activities and assembly facilities in Bengaluru. It also created a local parts warehouse in Bengaluru to offer spares and accessories to dealers.
He also said the firm was on track to introduce cars adhering to BS VI norms from April 2020 onwards.
On the dealers network, he said it was increased to 25 from 15 and was looking at doubling it over the next few years.