Volvo Releases China's Strategic Sales Target for 200,000 Years in 5 Years

Li Shufu's Volvo Car will formally step in the Chinese market. Today, Volvo Global CEO Jacobs and Volvo China Chairman Shen Hui will release Volvo China's business strategy in Beijing. At the same time, Volvo's first home-made base was formally settled in Chengdu.

On January 25 this year, Volvo China's headquarters and technology center officially settled in Shanghai, making China Volvo's second home market. It also enables Volvo Cars to develop its business in China, from a nationwide sales company to a full-service business group. Its China regional management team is also in place.

In 2011, which was acquired by Geely, Volvo Cars regained profitability, and the running-in of both parties was much easier. Last year, Volvo sold a total of 374,000 vehicles worldwide, an increase of 11.2% over 2009. More than 30,000 of them were from China, an increase of 36% over 2009. In the future, if Volvo is to achieve a revival, its supporting point will still be the Chinese market.

Shen Hui said that Volvo has established the "Volvo Car China Growth Plan." “Our goal is to make Volvo Car one of the leading brands in the luxury car market in China by 2015.” Volvo plans to reach 200,000 units within five years in the future sales volume of the Chinese market and increase its market share to 20% in the luxury car market. .

At today's China Strategy Conference, Volvo will announce detailed plans that will include Volvo’s positioning on itself. In the future, on the basis of maintaining the characteristics of Nordic premium cars, how to better localize in China and adapt to market demands will be a key issue for testing Volvo China's strategy. Li Shufu described Volvo's future development as "put the tiger back to the mountain", but how to put tiger into the mountain will still test the wisdom of Geely and Volvo.

The location of Volvo’s first domestically produced base in China is also expected to be announced at the same time. According to reports from the US media the day before yesterday, the board of directors of Volvo Car Corporation has passed a resolution approving the construction of its first auto assembly plant in China in Chengdu, China. Volvo had previously stated that the planned Chengdu plant will be put into production in early 2013 and will reach 100,000 capacity per year. After the new plant is put into operation, the S60 and XC60 production will also be transferred to the Chengdu plant.

According to Li Shufu's plan, Volvo will also set up production bases in Shanghai and Daqing, respectively, to support the sales target of 200,000 vehicles within five years.