Volvo is losing momentum in China – Swedish newspaper Svenska Dagbladet

Competition on the world’s largest car market, China is intensifying as the economy slows. Volvo Cars had a record year last year, when sales rose nearly 33 percent. It was the best in class. But now the brake is activated. When the German premium brands, Audi, Mercedes-Benz and BMW, have increased by between 7 and 17 percent in the first quarter backs Volvo in China.

The brand is suffering from old car models and wrong attitude, analysts said.

– We judged that Volvo with Chinese owners and with China as its second home market would have an advantage and be able to challenge the Germans. But the company has not lived up to expectations and now we are more concerned for Volvo’s future, says Bin Zhu, who is Director of Forecasting for China at analyst firm LMC Automotive in Shanghai.

Volvo grew big last year was expected, he says, because it was the first full year of locally produced cars on a larger scale.

– But adaptation to Chinese demand has been too slow. Volvo needs to change its attitude, says Bin Zhu.

He thinks Land Rover and Infiniti are more alert and is expected to advance. Some miss as he points out is that Volvo has not Chinese production of the new XC90 and do not offer long wheel base of the XC 60 because Chinese people like to have extra large rear seats.

The News at the Motor Show in Shanghai is not sufficient to Volvo should be fighting at the top of the premium league in the short term, according to Bin Zhu. Although the plug-in hybrid is a good step along the way.

There is an extended S 60 that combine electricity and gasoline. The car is manufactured in the factory in Chengdu and can run 53 kilometers on just electricity, which allows it to withstand the city of Shanghai’s requirement to obtain a license without having to win the bidding at an auction.

Volvo also hoping his new XC 90, but it will be before the first deliveries coming to China. At the Shanghai Exhibition Centre, Volvo a real lyxvariant, XC 90 Excellence, where the seven seats have been replaced by four to give much space. Hand, the luxury is enhanced by massage in the chairs, refrigerator, Soft, indoor lighting and more.

When Volvo was bought of Geely in 2010 sold more than 30,000 Volvo cars in China and the management put the cocky target 200,000 cars in 2015 . It laughed analysts ate. When the target was shot up to 2020 regarded it does not particularly bold.

– Nah, not considering that the premium market in 2020 is expected to be three million cars, says Bin Zhu.