Buoyed by Volvo's 2015 sales totals, Yuan Xiaolin, president of Volvo Car Group APAC, says he is confident in the Chinese auto industry, at a ceremony celebrating the brand's 88th anniversary. (Photo/Provided to China Daily)
Buoyed by record sales figures for 2015, Volvo Car Corp, owned by Zhejiang Geely Holding Group, is already flexing its muscle to begin the New Year.
Showing its confidence in the Chinese auto market, Volvo Cars celebrated the company's 88th anniversary with a major announcement last week that it will unveil eight new models and slash the retail price for its flagship product, the new XC90.
The new XC90 is a range of premium sport utility vehicles that Volvo began selling worldwide eight months ago and includes the XC90 T6 and XC90 T8. So far, more than 80,000 units of the two models have been sold around the world.
On Wednesday, Volvo launched the new XC90 T5, the newest model in the XC90 family.
On Friday, the company said it sold 503,127 units in 2015, a major leap from 2014, when it sold 465,866 units. It is the first time it has sold more than half a million cars in its 89-year history.
"We have created history," said Yuan Xiaolin, president of Volvo Car Group APAC, "and we have plenty of confidence in the Chinese auto market."
Yuan said China is at the "core" of the company's global strategy. Volvo sold 81,336 vehicles in China last year, a 0.1-percent growth from 2014, when it sold 81,221 units.
Considering China's economic slowdown and sluggish sales in the auto industry across the country, Volvo sees the modest growth rate as an achievement.
"We achieved everything we wanted in 2010 when we bought Volvo," said Yuan, who added that the overall development of the company "couldn't have been better".
Connecting with future
China's Zhejiang Geely Holding Group, one of the country's largest privately owned auto companies, bought Volvo Cars in 2010. Since that time, Volvo has seen five consecutive years of profit.
China is Volvo's biggest market in the world, accounting for about 17 percent of its global market share in 2014.
The country is currently the world's second-largest premium vehicle market, after the United States, with more than 2 million premium cars sold last year.
Yuan said the future is bright. Volvo Cars plans to reach a "higher than average" growth rate than other high-end automakers in China, he said.
After its announcement on Wednesday, Fu Qiang, president and CEO of Volvo Cars distribution, said the new XC90 will "connect the past with the future of Volvo".
"The debut of the XC90 has laid a solid foundation and synergy for the company's entire network. This flagship product will rebuild our brand's image and drive our sales to a higher level," Fu said.
Automakers in premium medium- and large-sized SUVs in China are engaging in major competition. Last year, Mercedes, BMW, Lexus and Land Rover all released new products at competitive price tags.
"To adapt to China's new normal economy and the heavily competitive market, we must start this market campaign to give something back to our new and old customers," Fu said.
The new XC90 is the world's first mass-produced premium SUV equipped with near automatic driving functions, Fu said.
Volvo views automatic and autonomous driving as key technologies for the future of the auto industry. The company has invested a great amount in resources to research and develop the technologies. It is the pioneer among automakers in the world, the company said.
The company said it will road test 100 units of its self-driving cars in 2017.
It will also develop an all-electric car for the first time in the near future. Volvo expects at least 10 percent of its annual sales to be electrified or plug-in hybrid vehicles in the next five to six years.
The company plans to launch another seven models later this year, including the new S90, the new XC90 T8 Excellence (plugin hybrid), new V40, S60L, XC60, S60 Polestar and V60 Polestar.
