In a bid to increase its automobile market share in India, Volvo has announced that it will make more low specification versions of its range available, with fewer safety features and smaller engines.
“The strategy is a response to the growing demand in India for high end cars but at lower prices,” Spokesman Stefan Elfström told The Local.
“Like many other luxury car makers we are reacting to consumer preferences in India, where they are very price sensitive. We have decided to offer smaller engines, the T5 for example, instead of a six cylinder engine, and made other modifications so we can be more competitive,” he added.
The car maker is planning to launch cheaper versions of its high end cars, including the popular XC60 och S60, but without certain safety equipment that is, according to Volvo requested less often by buyers in the Indian market.
Features such as lane departure warning and pedestrian detection technology, which automatically slows the car down when it detects pedestrians nearby, are to be jettisoned to make the cars more price-competitive, which will help increase sales.
“With the introduction of lower specification cars, we are looking to increase our market share threefold,” said Elfström.
In India, Volvo sold 150 cars last year.
“We hope to be reaching four figures this year,” said Elfström.
The company will not forgo the fully equipped versions of the cars altogether though.
“We will still offer a version with everything included, but this is the same strategy as our competitors in India like Audi and BMW,” he concludes.