Volvo Steps up Development of Chinese Truck Market Considering Production of Low-End Products
A road show aimed at opening up the Chinese truck market was recently launched in Shanghai and will last for six months and pass through 25 cities. Fredrik Hogberg, president of Volvo Trucks Greater China, said that this move meant that Volvo has taken a new step.
At the press conference, reporters saw a prototype car about to participate in the road show. According to reports, this prototype is equipped with advanced 13-liter engine and I-Shift gearbox. In July 2006, Volvo released two new trucks equipped with the above equipment in China. In that year, its sales volume in the Chinese market increased by 28%, and the market share has increased significantly, ranking first among imported brands.
The data shows that in 2006 China's heavy truck market sold 300,000 vehicles. Among them, the sales of Dongfeng Motor, FAW and China National Heavy Duty Truck are all over 60,000. Since the 1970s, Volvo Trucks has sold only 6,000 vehicles in China. In spite of the alarming growth in sales volume in 2006, the total sales volume was only over a thousand vehicles, and the proportion of its 105,000 units in global sales was still very small. According to industry analysts, the main reason is that Volvo trucks (including joint venture trucks) are too expensive.
Heberger said that high prices are linked to high-end markets. The high-end market is part of the Volvo China market, but to meet customers, they are also considering low-end products.
It is understood that another part of the road show is to demonstrate the long-term accumulation of experience in the logistics industry of Volvo Trucks, including a comprehensive logistics solution and after-sales service system. Volvo wants to promote its experience to enhance its competitiveness in the Chinese market.
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