Friday, May 18, 2007

Volvo plans entry

Volvo plans entry
Volvo plans to launch its S80 sedan and XC90 SUV in India around September this year.
Swedish carmaker Volvo, which is owned by Ford Motor Company, plans to launch its S80 sedan (pic) and XC90 SUV in India around September this year. These cars, which will be imported fully built from the company’s factory in Gothenburg, are currently undergoing homologation in India. According to the company ‘the certification process is in full swing, but is not yet finished’. The recent reduction in peak customs duty in the budget has not significantly impact its India pricing, which is estimated to be around Rs. 40-lacs for the S80 and Rs. 45 lacs for the XC90. Engine options for the S80 should include the V-8, 4.4-litre and 6 cylinder, 3.2-litre petrol engines and a 5 cylinder 2.4-litre diesel engine. The XC90 could get all these power-plants, plus a 6 cylinder, 3-litre petrol engine as well.

Currently the company plans to focus on these two models for India, which it believes have the maximum sales potential given our driving conditions. However, since the actual launch is still months away, Volvo has not begun taking orders for either model. As for the dealership network, the company plans to start with three dealers in Delhi, Mumbai and Chandigarh, with other cities being added in due course. Initially Volvo had planned to launch its cars here by end-2006 however delays in homologation have pushed this date to September this year.

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