Volvo plans to sell 200, 000 vehicles annually in China by 2018, as a new plant prepares to reach full production later this year.
Volvo’s plan to sell 200,000 vehicles annually in China is part of its strategy announced in 2011, after it was acquired by Zhejiang Geely Holding Group. Volvo sees the increasing demand in the country for premium cars, helping the automaker more than double its annual worldwide sales to 800,000 units by 2020, up from 373,000 vehicles sold in 2010.
China is Volvo’s second largest market after the US, and the automaker competes here with Jaguar, Audi and BMW. Daimler said that it sees premium auto market in China increasing at a “high single-digit or low double-digit rate” by the end of this year. In April total vehicles sales in the country increased 13.4%, up from an increase of 10.7% in March.
Volvo’s new plant located in the southwestern city of Chengdu is almost completed and it is currently manufacturing a limited number of vehicles to test the production process and the quality. The automaker plans to begin full production during the fourth quarter, when the plant will manufacture 125,000 vehicles annually. Volvo also builds a second plant in the northeastern city of Daqing, expected to begin production at the end of 2014.