Geely’s Volvo new models to help with the Chinese downturn image

Geely’s Volvo Car group is expecting its new Chinese XC90 and the S90 to lead to bigger sales the following year amid slower demands in the world’s biggest auto market and a massive decrease in car stock shares.

Hakan Samuelsson, the CEO of Volvo Cars Corporation, said that Volvo would not reduce its prices to increase sales as the manufacturer is looking to get on the high-end car market that is dominated by its German competitors. Samuelsson added that Volvo’s second model, the S90 sedan, will be launched in 2016 at the Detroit Auto Show and that it targets a bigger segment of the Chinese car market than the XC90 sports utility. The car sales in China have been slowing down in the past months due to a problematic economy and a fall in equities, which suggested that there is a need for new car line-ups in order to stay on top in a market on a continuous decline.

Volvo’s chief said that the Chinese market would only grow around 2% this year, and added that the Swedish carmaker would not get into a price competition with the other brands, despite analysts claiming the carmaker would actually cut its prices. Samuelson stated “There is a lot of capacity and there will be a lot of people who are tempted to use that capacity and keep their volumes growing. We don’t want to take market share just using the price as a weapon […] That will of course also influence exactly what growth rate we will see.” Volvo is expecting its global sales to reach a record of 500,000 cars this year and 800,000 by 2020 in a premium car market leaded by Daimler’s Mercedes-Benz and BMW.

By Gabriela Florea