Volvo sales in China

[Rawas]

who ever said that the marque is in trouble?


http://www.carnewschina.com/tag/volvo-china/

[tt82]

Hmm, China has a population of 1.4 Billion (1,400,000,000) and Volvo sell a 1 month record sales of 4,776 equates to abround 55,000 cars annualy. That equates to 0.004% of the population buying a Volvo car each year.

Sweden has a population of 9.5 Million (9,500,000) and if we say Volvo sell 55,000 car annualy. That equates to 0.57% of the population buying a Volvo car each year.

If you look at the bottom you will see this as well.

Volvo delivered 41,989 vehicles to Chinese consumers in 2012, compared to 47,000 vehicles in 2011, which had represented a 55 percent surge at the time. The weak performance in China, its third-largest market, dragged its global sales down by 6.1 percent year-on-year to 421,951 vehicles.

The marque is not in trouble, but it's not doing well.

[S70 B5254T]

That same source said so on the very same link! On Jan 20 & Oct 22.
Good news that things are picking up, though comparing car sales between two countries whose size & population are so different (China v Sweden) is probably not a reliable litmus test!

[volvorocks]

Isn't it a case of the Chinese people 'obeying' their government. The gov says buy a Volvo so they do!!!!

[Rawas]

Originally Posted by volvorocks

Isn't it a case of the Chinese people 'obeying' their government. The gov says buy a Volvo so they do!!!!

What do you think the Japanese government do? don't they share the same culture?

[Crockers]

I dont think you can compare populations & car purchases between those two countries. If so then you need to compare % of population that is in an economically viable position to purchase cars - not the total. Many of the Chinese can't even afford a bike yet.....

[Daim]

Originally Posted by Crockers

I dont think you can compare populations & car purchases between those two countries. If so then you need to compare % of population that is in an economically viable position to purchase cars - not the total. Many of the Chinese can't even afford a bike yet.....

China is still a very poor nation. The wealth you see in those new super mega cities (and those still growing) is only there. It isn't like Europe, where you have some locally weak areas where as the rest is strong. China is mainly poor and only a few local areas are strong. These areas aren't communistic (special economy areas) and work as a normal free market economy. Guangdong, Shenzhen, Zhuhai, Shantou, Fujian, Xiamen and Hainin have most of the income. On top of that, Hong Kong and Macao are both additional revenue areas. These areas though only cover a certain amount of the population (I think it was less than 25%). The rest of China is bitterly poor...

These special areas are full of private industry. Volvo though is now government owned (so a Commi brand ) and their prices don't obey the rule of supply and demand...

That is what the "Western World" doesn't take note of. They see the Chinese market booming (in the mentioned areas) and then wonder why they don't manage to sell that, what the company expected...