It is a well known fact that after the economic crisis which started with the housing bubble in the United States of America and spread over the whole world, some of the markets have not been able to recover sufficiently to go back to robust marketing activities. European have not been able to recover from the economic recession and many robust economies like Italy, Greece, Spain, Portugal and now Cyprus faced funding problems and have to pass austerity measures. European Car manufacturers who hitherto depended on their traditional customer base in Europe had to find new markets to offset the drop in sales of their cars in Europe. The Swedish luxury car manufacturer Volvo found it necessary to find new markets to sell its units. Volvo already has a strong presence in Japan and China, it is also shifting its attention to the growing car market in India.
A senior executive from Volvo announced that it plans to bring its ‘V20 Cross Country’ model to India. The sales of this car are very promising, the company has already sold nearly fifty thousand cars so far. However, there is no indication of what would be the price of this particular model. Also, the company would sell this car in the Indian markets as a ‘Completely Built-in Units’ from its established manufacturing units in China and Europe, because they do not plan to start a plant to manufacture their vehicle in the country so far.
Volvo management has future plans to improve the performance of the car by making an entirely new engine with 4 cylinders. The company also showed a robust sales growth over a couple of years; while in 2011 it sold only ‘320’ cars, in 2012 it sold eight hundred and twenty cars and so far in 2013 it was able to sell nearly one thousand one hundred cars.