Volvo to launch compact models starting next fiscal year

Swedish carmaker Volvo Car Corp plans to increase its presence in the luxury car market in India with the launch of a series of compact models starting next fiscal year, The Economic Times reported.

The initial models in the category to hit the road will be a sport-utility vehicle codenamed Concept 40.1 and a sedan currently called Concept 40.2. The 40 series compact cars unveiled at the company's headquarters in Gothenburg, Sweden, last week, will take on rival auto maker's entry-level luxury models such as BMW X1, Audi Q3, Audi A3 and Mercedes-Benz GLA to gain volumes in a market driven by young urban customers.

Entry-level luxury cars from German manufacturers are on offer for Rs26 lakh plus in the Indian market. "Entry SUVs are extremely important for a market like India," said Peter Mertens, senior vice-president for research & development. "We are seeing a lot of growth coming in from the segment in BRIC (Brazil, Russia, India and China) countries. Also, in the Americas, the trend has become apparent," ET reported.

Volvo, now owned by China's Geely Motors, has been driving an aggressively strategy design-wise.

''Each member of our product family has its own distinct character, just like the members of a real family,'' Thomas Ingenlath, Volvo's head of design, said in a statement. ''They have an energy, a disruptive and engaging urban character that makes them stand out amongst the crowd. This is the flavor of small Volvos to come.''

Drawing an analogy between cars and shoes, he likened 90 series cars to fancy leather shoes. For stepping out in high fashion, the series cars were like a more casual shoe in suede and the 40 series cars would now be bold black and white wing tips designed to appeal to younger drivers, gas2.org reported.