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Volvo is considering the launch of cheaper stripped down variants of its cars in India. The company plans to boost its sales volume significantly and is relying on the increasing demand of luxury cars in the country to help them achieve their sales target. BMW and Audi have basic variants of its cars, while Mercedes-Benz is also planning to launch stripped down versions of the C-Class and E-Class. The base variants of the BMW X1, 3-Series and 5-Series account for more than 50% of the sales of the Bavarian automaker in the country and now Volvo too plans to remove equipment from some of its cars, including the recently launched S60 sedan.
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The basic Volvo vehicle (the S60) has a starting price of Rs. 38 lakhs. The Swedish Chinese automaker imports all its vehicles to the country as it lacks any assembly or manufacturing facility in India. This not only attracts a hefty 110% duty but also leads to expensive spare parts for the cars. A stripped down variant, which could loose equipment such as sunroof, blind spot assist and leather seats will help Volvo play the value game in the highly competitive Indian car market. But will a stripped down Volvo work vis-a-vis a stripped down BMW?
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