First seven-seater car launched in India

The Swedish Volvo Group is launching its first seven seater car in India, which is available in five attractive colours, stylishly priced at Rs 58 lakhs. Paul De Vojis, managing director, India says, they plan to launch three more models soon..

SWEDISH LUXURY car manufacturer Volvo has rolled out the latest variant of its luxury SUV XC90 in the Indian market. The car comes outfitted with a powerful V8 4.4 litre petrol engine delivering 315 bhp.

The XC90 made an entry to the Indian market in the year 2007 and the all-new variant is loaded with a host of luxury and safety features. It comes equipped with sports calibrated steering, sport-tuned chassis, and stylish stability control techniques.

According to Volvo Car India managing director Paul De Voijs, “The launch of the new variant of XC90 aims to broaden our model range to attract more customers with an active and urban lifestyle. Volvo that entered the Indian market in September last year with two models, has so far sold over 100 units.

He also said that we plan to launch our most recent offering XC60 soon after it is rolled out in Europe in November this year. We have three other models that might also be launched in India.”

The Volvo XC90 R-DESIGN will be available in five colours and is the first seven seater Volvo car in the country. The car is priced at Rs 58 lakhs (ex-showroom, Delhi).

The company is also planning to bring its all-new compact-sized crossover, XC60, in the country after its launch in Europe next month.

Lamborghini sees India as big market for future

Iconic Italian sports car maker Lamborghini has big expectations from India and has identified it as a “big market for the future”. In India since 2006, the company is now working on expansion plans and is confident that the rapid economic growth and new-emerging billionaires would make India one of its strong markets in the coming years.

“India is a big market for the future for Lamborghini. It is a big country and the attitude of buyers is now changing and they are becoming more open to buying ultra luxury high-style brands like ours,” says Enrico Maffeo, global director of sales and customer service for Lamborghini, told TOI.



Lamorghini, famous for its raging bull logo, sells the Gallardo and the Murcielago sports cars in India that are also available in their various variants like the lightweight Gallardo Superleggera and the convertible Gallardo Spyder, all of which retail for a hefty Rs 3 crore-plus.



Maffeo, a regular visitor to India, said high price was not much of a deterrent for their target customers who choose a Lamborghini for its exquisite design, high-profile branding and uncompromising performance. The company, which currently retails in India through its only dealership Exclusive Motors of Delhi, hopes to sell ten of its famed cars here this year. “Our business is not that much about volume. It is more of brands and desirability. Our plan is to create brand awareness, and the sales will follow,” he said.

Maffeo said as the company expands in India, Lamborghini would also increase its distribution network here. “We plan to have a new dealership in Mumbai next year and follow it up with one in Hyderabad in 2010,” he said.

But just when it looks to expand and grow in India, it also faces competition from rival like Ferrari. Alarmingly, Ferrari may get assistance from domestic heavyweight Tata Motors, the joint venture partner of Ferrari owner Fiat, when it decides to come to India. Maffeo said any new brand had to go step-by-step in any market. “And don’t forget. We are part of the Volkswagon group that already has presence in India through brands like Volkswagon, Skoda, Audi and Bentley.”

Luxury cars fly in ‘ recession- hit’ India

The Luxury car market in India is growing like never before. Sample this: In the first six months sales of luxury cars have almost doubled.

Mercedes

Mercedes India has sold 1,892 cars in the country compared to 2,491 cars sold last year.

BMW

BMW has sold 1,323 cars in the first five months, which is almost equal to the 1,387 cars the company sold during the full last year.

Volkswagen

The Volkswagen group has managed to sell 810 premium cars of its two brands Audi (470 units) and Volkswagen (340 units).

Audi

And Porsche is aiming to double the tally of its car sales this year by selling over 200 premium cars.

Clearly, financial sector meltdown and the consequent wealth erosion hardly seem to be dissuading buyers of high-end cars in India, even as the global luxury car makers pump in huge resources to lure the Indian customers.

“If you look at the segment we are operating in, price sensitivity of the product is not an issue,” says Kurt Rippholz, head, communications, Volkswagen India.

To this Dr. Wilfried Aulbur, chief executive officer and managing director, Mercedes India, adds, “Back in 1995 when we started operations in India, we were optimistic about the potential that India held and we are now convinced about it.” And why not?

According to the 2008 Wealth Report by Merrill Lynch Cap Gemini there are around 1,23,000 millionaires in US dollar terms in India. Also, the country has a significant number of young, rich and enterprising people in smaller cities who are spoilt for choice. And manufacturers are strutting their products to lure them.

Bentley

So, the top- end luxury cars such as Bentley and Lamborghini, which cost upwards of Rs 2 crore, and that can only sell around 25 and 10 cars, respectively, for exclusivity sake, have industrialist buyers queuing up — for four to six months — to get their cars. But it’s the entry- and mid- segment luxury cars that are selling like hot cakes among the class aspirants.

Lamborghini

This year till June, Mercedes sold 1,000 C-Class cars ( Rs 25 lakh onwards). In fact, in March alone, it sold over a 100 Mercedes S-Class cars ( Rs 70 lakh onwards).

Maybach

BMW sold 666 cars of its 5 Series and 355 units of its Series 3 cars upto end- May this year.

BMW

Last year Audi sold 107 units of its Q7 model while Porsche sold around 90 cars of its Cayenne model. “Along with corporate sales that are pushing the sales of these premium cars, aspirational sales are fast picking up.

Interior of a Rolls Royce

Professionals in their thirties who have a global lifestyle and hail from smaller towns are the main customers in this segment,” says Aulbur. And to sell these new cars, companies are expanding their distribution network thick and fast. New dealerships are being set up in Tier II, III cities.

There is a sizeable population of Mercedes cars in cities such as Kolhapur, Ludhiana, Madurai, Coimbatore and Kochi.

Volkswagen, in its second phase of expansion opted for cities such as Hyderabad, Chandigarh and Ludhiana for their dealerships and Porsche is looking at potential new dealerships in Punjab. “We are trying to have 120 distribution dealerships in the next three years as we expect a growth of 250 per cent in the Indian auto market over a period of ten years,” says Kurt. And he is not alone; Audi is planning to take the tally to 11 dealerships from the existing seven by the end of the year.

Porsche

Porsche is looking at having nine dealerships by 2010 from the current two and is also looking at building a steady relationship with Indian customers. So, it’s zip, zap zoom time ahead for the luxury car market in India.