Volvo has announced that China is poised to replace the US as Volvo Car Group’s (Volvo Cars) largest market in 2014 with sales of at least 80,000 cars, up from 61,146 in 2013, highlighting the company’s growing presence in the world’s fastest growing automobile market. Sales in the US in 2014 are also expected to increase.
The emergence of China as Volvo Cars’ leading market represents an important step towards the company’s long term goal of selling 800,000 cars a year and promises to break a 20 year cycle during which it has consistently sold around 400,000 cars a year. For a company that looked ready for extinction a few years ago, this is an amazing fight back.
“Growing demand for first-class safety and environmental performance makes Volvo an ever more attractive brand in the Chinese marketplace,” said Håkan Samuelsson, President and CEO. “As a company at the forefront of technological and environmental developments, Volvo Cars is well placed to enhance its reputation as a premium brand and further strengthen its position in China.”
The premium segment of the car market in China is forecast to grow by 20 percent this year. Volvo Cars expects to outpace this growth, indicating it is gaining market share from its competitors. Volvo Cars’ confidence is borne out by first quarter sales figures for the China market, which reveal sales rose to 17,286 cars, a 25.4 percent increase compared to the first quarter of 2013.