Volvo rapidly expanding sales network in China

Shanghai October 11 (Gasgoo.com) Two new Volvo dealerships were recently opened in Beijing in just one week by Zhejiang Geely Holding Group Co., which acquired the Swedish brand from U.S. auto giant Ford last month and is expanding rapidly Volvo's sales network in China, the Beijing Times reported Monday.

Beijing is a major market for Volvo cars, and as the number of Volvo dealerships grows, we hope to see the dealers gaining more profits from it as well, said Alexander Klose, CEO of Volvo China.

Sales of Volvo cars increased 60% in China in the first nine months of this year, helped mostly by sales of the S80L and S60. The number of their dealerships is rising in the mean time, Alexander Klose said.

It is reported that Geely has not finished building Volvo network in Beijing and more dealerships will be opened later. Sources said a new dealership is now being built and the other one is being reconstructed based on some city showroom.

Volvo's new management team is well aware that the best way to improve the sales of Volvo cars globally is to conquer the Chinese market, and then it will have to adjust Volvo's current product line-up. 

Volvo's product line-up in China is very limited, it, however, wants to compete with Audi, BMW and Mercedes-Benz that all have otherwise incredibly broad product line-up, the dealers said, adding that not only the number of Volvo products is limited in the domestic market, but it has a small market share in each segment.