We are talking about the uber luxurious hatchbacks that are bought more for their style than practicality. Mercedes India is charting out a strategy to introduce the A Class. The Beetle and the Fiat 500 are already present in the market.

One potential contender we see heading to the Indian shores is the Volvo V40 – a hatchback from Volvo which is touted to be the most important car Volvo has launched in the last 20 years.

Volvo has high expectation from the V40 because it has the ability to change the fortunes of the company. The car has finally hit production lines in UK and the speculators are expecting a massive demand for the same. The V40 will compete against the Audi A3, Mercedes A-Class and the Mini.

Any firsts?

Besides paying the highest possible level of attention to safety standards, the Volvo V40 is also the first model to be fitted with a pedestrian airbag that deploys to minimize the risk of head injury for cyclists or pedestrians who are involved in a collision with the car.

The V40′s Indian angle

Our conversation with Mr Tomas Ernberg, Managing Director, Volvo Auto India revealed that Volvo India is planning to launch a compact model in the beginning of 2013. Our guesses are that he was talking about the V40 which we have comprehensively covered over here.

Post-Ford era

Volvo is making great strides to make up for the time that it has lost to the Germans under the ownership of Ford. The company wants to move further upmarket and gain more market share at the same time. Currently, the Swedish manufacturer is busy working on developing an all new successor for the legendary XC90 while S60 and XC60 are pulling in customers from rival brands. Volvo needs to overhaul the S40 and launch a crossover on the V40 platform to compete with more strength.

The company recently hired Mats Fagerhag (lead product developer for Saab) to head up its alliance office, which seeks out partnerships with suppliers and third parties. At Volvo, Fagerhag will work with suppliers to create new relationships after Volvo split from former parent Ford.

[Source: autoevolution.com & leftlanenews.com]

The idea is that Geely will have its own luxury marquee (like Toyota has Lexus) which will make luxury SUVs for the Chinese market. The existing XC90 platform will form the base of the new SUV from Geely’s luxury SUV division.

The XC90 platform is essentially a Ford Taurus sedan platform and is as old as the 1990s. Volvo is busy working on an all-new platform for the next generation XC90 which will debut in 2014 or so.

Thus, instead of scrapping the old platform completely, Volvo has handed the platform to Geely so that it can be recycled into another SUV for the Chinese market. Recycling old cars with new faces under sub-brands is a common occurrence in the Chinese auto market. Because most of the research cost on the platform is already recovered, it enables the manufacturer to reduce the price of the recycled car.

[Source: AutoEvolution.com]

The Chinese love lots of leg space at the rear and because the Chinese market is such a high volume game, manufacturers, big and small, are more than happy to oblige the Chinese demands and make an exclusive variant.

Most manufacturers have stretched versions of their existing cars already running in China. Volvo also plans to introduce a stretched version of their popular contender S60. The normal S60 is available in China as a CBU import from Europe. The company will be producing the Volvo S60L at the Chengdu manufacturing plant where it also makes the S80L.

The key would be to not make it look disproportionate in length. The S60′s aggressive styling is a double edged sword. The smartness of Volvo’s designers will be on view while they deal with masking the extra length.

Surprisingly, none of the auto manufacturers sell LWB sedans in anywhere in the world apart from China. Personally, I think LWB sedans would work great in India as we too love our rear leg space like the Chinese.

[Source: ChinaCarTimes.com]

The D3 engine produces 163 PS/400 Nm while returning an impressive fuel economy of 18.5 kmpl on S60, 17.8kmpl on S80 and 14.7kmpl on the XC60.

The idea was the downsize the engine and thus reducing the price of Volvo cars making them affordable when compared to the Germans. It will take us some time to analyze whether the numbers have started to trickle in.

But in the backdrop, Volvo has reportedly announced to launch the D3 diesel engine lineup in Europe. The new 2.0L turbodiesel five-cylinder is now available on S60, V60, V70 and S80 models. The updated range now consists of the 113bhp D2, 134bhp D3, 161bhp D4, and 212bhp D5 engines.

However, the motive to launch the D3 range in Europe is not cost cutting but to reduce emissions. The D3 engine was heavily tweaked to improve efficiency and to reduce the CO2 to less than 120g/km.

[Source: whatcar.com]

According to media reports, the XC40 is just the start of a new lineup of vehicles that includes replacements for the aging XC90, S40 and S80 models beside new introductions such as the XC40 crossover. Most of these vehicles sit on a scalable platform that provides huge cost and time advantages.

Underneath the skin, the taller and stouter Volvo will retain most of the V40′s mechanicals. It could be slightly longer than the BMW X1 and Audi Q3. The 2-liter D3 engine from the S60 could be the best bet for the Swedish car company still looking for ways to make inroads in the booming Indian luxury market.

The XC40 is an important model not only in emerging markets, but also in regions like Europe and America where appetite for crossovers are high. BMW had recently announced the X1 for the US market.

[Source - AutoPlusBasket.BlogSpot.it]

Volvo India, through new models and low price, is aiming to increase its market share in India and the V40 hatchback can be the most crucial model from that perspective. The new V40 is the compact car that’s pitted against the new introductions – BMW 1 Series, Mercedes A-Class and the Audi A3.

Two out of these three cars are going to be seen for the first time at the Geneva Motor Show where Volvo will also drop the V40. Can the V40 find ways to rewrite the rules in the compact luxury market with its simple yet interesting design?

What’s not news is Hyundai working on an i20-size hatchback for the Brazilian market to form a new entry point. What’s hot news is the Korean company is not putting a full stop there. The HB platform extends to to roll out a sedan (like the Verna) and a mini SUV (a la Duster) in the next two years.

2012 will be dedicated to the hatch after which the sedan and SUV could be launched in 2013 and 2014 respectively. Hyundai is reportedly trying out engines displacing 1.0-1.6 liters for the HB platform derivatives. These models are not expected to be built outside Brazil.

The Kia Cee’d is the Hyundai i30′s distant cousin. The Cee’d, recognized widely for being the “reasonably priced car” on Top Gear UK,  is a C-Segment hatchback and with a complete redesign, it has plans to shake up the American market. Using design and the too-tempting-to-miss 7 year warranty in some markets, luring customers into showrooms is a game Kia is getting better at.

A more pointed “Tiger-nose” grille and more ergonomically designed cockpit are some of the interesting changes on the new Cee’d that lands at Geneva next month. With great design, ever improving quality and competitive pricing, the Cee’d could go a few steps forward and come dangerously close to grabbing customers of the i30!

The Volvo V40 is a premium 5 door compact car soon-to-be-launched by Volvo to replace the S40 and V50 station wagon. The V40’s design draws heavy inspiration from the sweet-looking S60 though in a very conservative manner.

Typical characteristics such as hexagonal grille, swept back headlamps, flowing hips and a rising belt line are the key features of the new design. Just like the Honda Brio (my apologies for the sacrilege), the hatch of the V40 is entirely from glass.

The V40 will measure 4,500 mm or about 177-inches in length and will be based on the new Scalable Platform Architecture that will underpin the majority of Volvo’s future models. It will be powered by Volvo’s new range of  modular 2L, four-cylinder Volvo Environmental Architecture (VEA) engines. A crossover of the size of the X1 and the replacement to the S40 are likely to share many components with the V40.

If the V40 is introduced in India, it will be brought in CBU form making it as expensive as the recently launched Mini Cooper and the upcoming B-Class. Volvo’s keen interest in the Indian market may mean a slightly aggressive price tag for the V40 as compared to the Mini. Would it find any takers?

[Source: Motodziennik]

Summary
1) Margins have been reduced for the current aggressive pricing. Prices will normalize after 12 months
2) 800 units is the target for this year. Plans to sell 20,000 units by the end of 2020. Targeting top 3 slots in the Indian luxury market by 2020.
3) No new dealerships this year. They will start popping up in 2013
4) No new models will be launched this year. A brand new one will be launched in early 2013.
5) Competition is perceived to be the biggest challenge for Volvo cars in India.
6) Concept Universe hints about the future Volvo globally – planning to be more luxurious
7) XC90 replacement will be out in 2014-15

1.    How did you manage such an aggressive pricing?

Let’s put it this way – We have taken a decision that India is very important for Volvo Cars. We are going to put our strategic focus on growing Volvo’s presence in India. To do that, we have also analyzed the customers in different focus groups across 3 different cities (Delhi, Mumbai and Hyderabad) around India. We found that comfort, luxury and price is very important. Then we looked at the segments and we realized that the Germans have been very successful with ‘corporate edition’ models. So if Volvo cars wanted to take India seriously, we have to be in that pricing segment

So margins have taken a huge hit but we have done that because we want to be present in India and grow. In the future, we will be slowly increasing the pricing our car prices as these prices are not sustainable for long period.

2.    As your margins have taken a hit, by when do you plan to increase the prices?

For the next 12 months, the current prices are sealed. In October 2013, depending on the demand, we will modify the pricing.

3.    What about the dealership aspect of Volvo cars in India?

We want to focus on developing our current dealer network this year by increasing their competence and making sure that they are able to deliver the commitment of customer satisfaction. By doing that, we want to create success stories and then replicate. So this year, we plan to start negotiations and choosing new dealers in different parts of India. But new dealerships will only open by 2013. In 2012, we will stick to where we are – so 7 dealers. We just want to make sure that we have the right partners.

4.    What are the car-servicing aspect of your business?

When we started the operations in India, we offered a 2 year free service package. We have withdrawn that now. But still, we are 30 -40% cheaper than our rivals in terms of servicing.

5.    Will there be any new models launched in India this year?

This year we will not be introducing any new models. But by beginning of 2013, there will be a new model coming to India.

6.    Your target is 20,000 units per annum by 2020? How do you plan to achieve it?

2012 we will be targeting 800 units. 2013 will be closer to 2000 and from there 3500, 4000 and 6000 units per year. The biggest jump that we will have will be 2014-15.

This year will be the most important one for us because we are planning a jump from 300 units to 800 units. Plus, as I have said that we are developing new dealer base, so 2013 would be easier to build volumes.

7.    ‘Safety’ is your USP. How difficult/easy is it to sell Safety in India?

Volvo cars are the safest in the world. But Safety is not the most critical factor when one is buying a luxury car in India. If you buy luxury cars such as BMW/Audi/Mercedes of course they are safe as well. Safety is not a criteria in India but it is a qualifier – you have to have it. What we are trying to sell is brand value.

We are trying to get younger people to drive our cars. Our target is people who drive themselves.

8.    What will be the biggest challenge for Volvo cars in India in the coming future.

Competition will be the biggest challenge. The Germans are pretty strong contenders. Many brands such as Infiniti and Lexus are still not here. Porsche is planning to expand in India. So we will have to be on our feet all the time.

9.    What about the Concept Universe? Will it ever see the production line?

Concept Universe gives a guideline of where Volvo wants to be in the future. We want to be more luxurious and compete with the best luxury brand in the world.

10. Any updates on a replacement of the XC90?

There will be a new XC90 coming soon. But it is not due this year or next, perhaps in coming 2014-15.

11. There has been a recent trend of downsizing the cars. Does Volvo plan to join the party?

Yes, most German manufacturers are downsizing their cars. We also plan to have a small car in 2013. It will surely be introduced in India.

12. Volvo cars is now owned by Geely. How has that impacted Volvo cars?

Our new owners understand the brand and want to keep us as independent as possible. They are backing us financially for a new models. With Ford, the research money was hard to come by. So we are quite happy with deal and our new CEO Stefan Jacoby is quite focused on decentralizing. There is more accountability and more entrepreneurship.

Click through the image gallery from the event

Volvo D3 range in India – Image Slideshow

Can’t see the images? Head to our Flickr page right away!

Mr. Tomas Ernberg, Managing Director, Volvo Auto India poses with the D3 range

Volvo is providing the same engine on the S80 as well.

The Delhi ex-showroom prices of the D3 range are as follows

• Volvo XC60 D3 – 33.9 lakhs
• Volvo S80 D3 – 31.9 lakhs
• Volvo S60 D3 – 23.9 lakhs

Volvo D3 range prices in detail

A 70,000 rupees discount is offered for customers who book the car by March. The bad news is Volvo has withdrawn the two-year free service package for these models.

Stay tuned for more details!

When I say ‘little known’, I would be absolutely wrong because as a brand ‘Volvo’ is much deep rooted in the Indian psyche than even the three pointed star. But brand Volvo is more known for its fantastically comfortable commercial buses than its cars.

Anyways, the Swedes have launched the 2012 Volvo XC60 at a much cheaper price tag of 34.4 lakhs (ex-showroom, Delhi). How did they manage to reduce the price you ask?

Well, essentially they downsized the old D5 engine to make a D3 version. Now this inline in-line five cylinder turbo diesel engine produces 163 bhp and 400 Nm of peak torque. The engine is mated to an automatic six-speed transmission with four-wheel drive system. This engine will play a much bigger role as Volvo plans to launch our favorite Volvo – S60 with the same engine on the 15th of this month.

The Volvo XC60 will directly compete against Audi Q5, Land Rover Freelander 2 and BMW X3. Strangely, the Volvo XC60 is much cheaper than the German rivals despite the fact that the Germans are assembled in India and the XC60 is imported as a CBU. However, only 7 service stations across India are certainly a point of worry.