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Geely clear it does not want to touch Volvo DNA

Our Bureau Coimbatore | Updated on May 10, 2011 Published on May 10, 2011

Swedish carmaker's MD says no plans for a unit in India

Geely Holding, which acquired Volvo from Ford, has no plans to touch the Swedish automaker's DNA, said Mr Paul de Voijs, Managing Director, Volvo Auto India.

Replying to a question at a news conference here on Tuesday, he said the Chinese company was clear that it wants Volvo to be run by Volvo people, and it would not ‘touch the Volvo DNA'. He also said Volvo has no immediate plans for a manufacturing facility in India as it is not economically viable.

The conference was held in connection with the launch of Volvo's compact luxury SUV and luxury sedan in the city.

Mr de Voijs said Volvo did not have ‘any interference from Geely on how Volvo runs its business in India'..

Electric models

Asked whether Volvo was eyeing the low-cost car market in India, the Volvo India MD said the company has no plans for the Rs 1 lakh to Rs 5 lakh segment as it would not be in sync with its image. But, it is looking at segments such as alternative fuel-powered car.

On the possible launch of Volvo C30 Electric, which Volvo proposes to introduce in Europe, Mr de Voijs said electric cars would be introduced in India once the infrastructure is created and demand is felt. He said he hoped the launch would be supported by lower duties.

Price and sales

On pricing, Mr de Voijs said Volvo has been able to price cars competitively when compared to some of its competitors who manufacture luxury cars in India. The luxury car segment was growing annually by 35 per cent, he said. Volvo India's growth was around 200 per cent, though this may be because of a lower base.

The company hopes to sell 400-600 cars during the year. In the first three months, it has sold 130 cars, which was the same as last year's. . With the introduction of new models in the luxury segment, Mr de Voijs expects the volume to go up.

Published on May 10, 2011
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