Volvo is gearing up for an India road show

MUMBAI: Volvo Cars, a division Ford Motors, is lining up many product launches for the country. After sedan S80 and sports utility vehicle XC90, expected by the year-end, the company is finalising the line-up of its other luxury offerings as well.

“The logical thing would be to bring in another sedan. We haven’t decided on the model yet, but it could be S40 or S60. We are also considering bringing in hatchbacks — C30 and C70. Our new SUV, due in 2009, could be also brought-in here,” Paul de Vojis, managing director, Volvo Car India, said. Market watchers say Volvo may not bring in S40 since it shares the platform with Ford Focus, which is also slated for an India launch.

In spite of Volvo Cars India operating as a division of Ford India, Vojis said Ford would have no say in pricing, marketing, network selection or product introduction.

“We will take Ford’s support in back-office operations like HR (human resources), homologation, IT, logistics, and accounting, but Volvo Cars would remain responsible for products, pricing, and marketing,” he said. Volvo Cars plans to import the cars as CBU (completely built units) and has no plans for any local assembly. In China, where it has recently set up an assembly unit, the company sold about 8,000 units last year. A similar volume demand will justify the need for a plant in India.

Currently three engine variants each (2.5 litre diesel, 3.2 litre petrol and 4.4 litre petrol) of S80 and XC90 are undergoing homologation, a process expected to be completed by August. After that, the company would announce its launch date.

Volvo Cars is entering market with three dealers (Delhi, Mumbai, and Chandigarh). “It is our deliberate strategy not to start with 12 cities at the same time. Moreover, these three cities represent more than half the country’s potential,” he said.