New C30 launch helps Volvo explore Chinese market

Shanghai, March 26 (Gasgoo.com) The new Volvo C30 was recently launched in China's capital city of Beijing and the global markets simultaneously, which not only enriches the product line-up of Volvo, but also shows its preference for the Chinese market.

"The new Volvo C30, our youngest model, is to open up a new marketing network in the luxury sports car segment with its advantages in design, driving pleasure and other competitive aspects", Alexander Klose, CEO of Volvo China said to reporters.

Strategies for deeply exploring the Chinese market

In 2009, Volvo gained 80% market growth in China and sold actually over 22,000 units through the year, 20% higher than the luxury car market’s average. In 2010, its market strategy for China has been further strengthened, the sales growth up 140% through January to February.  

In Klose’s view, the personalized, fashionable new C30 represents the younger trend of Volvo, designed for the elite professionals in the first-tier cities like Beijing, Shanghai, etc., thus only targeting at a smaller group so far. But it should have a larger market share in the subdivided market.

The big increase in sales volume of course comes from its Chinese OEM, Changan Ford, which is currently producing the Volvo S40 and the longer S80L (with an extended wheelbase). Klose is positive about Changan Ford’s technology capability for Volvo’s production since the quality of all Volvo cars by Changan has reached the stringent global standards of Volvo.

As a low-carbon and new-energy society is approaching, Volvo seems to be slower than other automakers in the research and development of the new energy cars, but Klose denied it. He told reporters that actually they had been working on this program, adding that an European JV of Volvo can provide technical support for the coming electric vehicles and its slow launching was only because of the actual circumstances.  

Sun Wei, Director of the Volvo China market, said that in addition to the normal version of C30 launched at the scene, they would also launch an electric version of C30 showcased at the North American Auto Show at the beginning of the year, which could be fully charged in 8 hours, up to 150 km accumulatively. Volvo is currently extending its technical research to electric vehicles. In the future, they will have to take the Safety Collision Test like the current mass-production models.

"C30 pure electric vehicles will be released into five countries across European for customized sales by 2012. Whether or not it will be carried out in China is up to relevant policies and the development of new energy." Sun said.

Facing global challengies

Now, Volvo’s performermance is average compared to many of the world automobile brands, reflected by its sales volumes. According to the 2009 Automotive Initial Quality Ranking list published by J.D.Power, an authoritative automotive investigative body, Volvo was ranked on middle and below level, and surprisingly it was again found out to stay on the middle level at the fault and reliability investigation into cars produced within 3 years done by J.D.Power, which shows clearly the big global challenge faced by Volvo.

For the Chinese market, Klose said its biggest competitor is Audi because the brand image of Audi has deeply rooted in Chinese people’s mind, and that’s exactly what Volvo has to further enhance.

Specifically, on the one hand, Volvo will introduce more new models, such as the globally launched C30 this time. With such an increase in launch, consumers will surely be well stimulated. On the other hand, Volvo will further increase its investment in the marketing.

Meanwhile, Volvo will also further strengthen the co-operation and sponsorship activities, which will no doubt promote its brand positively.