Swedish carmaker Volvo Car Corporation is revving up plans for India with an aim to become the third largest luxury car maker in the country by 2020, for which it may even consider assembly operations.
The company's Indian arm Volvo Auto India will also be launching products at the entry level points of the luxury car segment apart from expanding its dealer network in order to increase volumes.
"There is an intensified focus on India from the headquarters as the luxury car market here is estimated to touch 1,50,000 units by 2020. The target is to touch an annual sales of 20,000 units by then," Volvo Auto India Marketing and PR Director Sudeep Narayan said.
At present, the company is an insignificant player in India selling 326 units last year. It is targetting 800 units this year. "We are looking to dislodge somebody from the third slot by 2020," he added.
Last year, BMW led the market followed by Mercedes and Audi in second and third place, respectively. However, in the first three months of this fiscal, Audi has overtaken Mercedes to bag the number two spot.
According to figures released by Society of Indian Automobile Manufacturers (SIAM), in the first quarter of this fiscal, BMW is leading with 2,088 units, followed by Audi with 1,908 units, while Mercedes dropped to the third spot with sales of 1,257 units.
Asked if Volvo Auto India would consider assembly operations in India, Narayan said: "If we are looking at 2020 with that sales target, then we should have a look at having an industrial presence. However, at present no decision has been taken and our management has not looked at that yet."
On the product portfolio expansion, he said Volvo Auto India will be looking to launch one new model every year for the next couple of years, including products at the entry level range of the luxury market priced around Rs 20 lakh.
"A new global product will be unveiled at the Paris Auto Show this year and that will be launched in India in the first quarter of next year," he said without specifying details.
The company sells sedans S80, S60 and sports utility vehicles XC90 and XC60 in India.
On dealership expansion, he said the company has shortlisted locations in Bangalore, Ahmedabad and one more in the National Capital Region to add to the existing eight outlets.
Narayan said in order to build the brand, Volvo is associating itself with designer Ritu Beri for the Lakme Fashion Week, apart from holding golf tournaments.