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Sedans and five-doors key to Volvo growth
Stronger performances from non-SUV models key to growth says local Volvo bossVolvo will grow its sales Down Under this year but needs to move more of its sedans, wagons and hatches. That's the appraisal from Volvo Cars Australia boss, Matt Braid.
Year to date May, Volvo is just under two per cent up on its equivalent 2013 volume but Braid says the second half of 2014 will yield stronger sales for the Swedish marque. This is despite the fact the company's stalwart XC90 is in run-out ahead of the all-new 2015 model and will likely exit the market (in volume terms) before the end of 2014.
Braid says he believes Volvo will deliver overall sales growth of between 10-15 per cent this year. Such growth would place total sales at between 5700-5950 by year end.
Although he says the XC60 medium SUV is performing well, key to hitting this 2014 volume target will be better sales performances from the company's S60 medium sedan; its wagon variant, V60; and Volvo's newest entrant to the local space, the V40 compact premium hatch (pictured).
"It really comes down to the fact we need to get the second car in the garage [of our customers] I think the other competitor [luxury] brands we deal with have probably done a better job than we have on that," Braid told motoring.com.au.
"We know when it comes to a family buying an SUV we're going to be on the shopping list ... But when it comes to an executive going 'Okay, I've got a family car sorted out, but now what car am I going to buy for myself?' we haven't been on that shopping list," he stated.
Braid says that dynamic is changing – in part thanks to Volvo's successful entry into the local V8 Supercar paddock.
"We are seeing a lot of people going 'Oh, okay, there is a car from Volvo and actually that does look appealing and actually it drives very well.' And there's [now] more awareness that we do have good product offerings in that [performance] segment which to date a lot of people have either not looked at or not been clearly aware of," he said.
Although combined S60 and V60 sales are up almost 60 per cent YOY, by way of comparison third placed premium brand Audi sells almost three A4s to Volvo's one S/V60. V40 variants have sold over 500 units YTD May but Mercedes-Benz's A/GLA class models have together topped 2500 sales for the same period.
The Volvo Australia boss says his company must still do a better job with 'selling' the benefits of these non-SUV models. But he stresses price cuts are not on his agenda.
"We're a luxury brand, so we need to push the luxury potential of the brand, push the technology, push the performance aspects we'll have – currently in many models, and in the future," he explained.
"You won't see us trying to obviously bring the brand down to what the [local market's] expectations are, but we need to raise the expectations of customers on what the brand provides them in this market, as is being done in other markets around the world," Braid stated.
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Written byMike Sinclair
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