China becomes Volvo world's fourth largest market
07 June 2010
Volvo's robust sales in China has made the country, the auto maker's fourth largest market in the world. This is despite sales declining in the US by 16.5 per cent.
Volvo sales in China soared by 108 per cent, more than double its last year's sales, as the auto maker achieved record success during the period from January to May 2010.
Corresponding sales in the US till May fell 16.5 per cent to 4,659 units compared to the same period last year, when Volvo sales fell below 330,000.
With the US auto industry in decline, Ford sold Swedish brand Volvo to China's 10th largest car maker Geely auto group for $1.8 billion in March this year, thereby gaining a foothold in Europe, making China's largest privately-owned carmaker a global player.(See: Ford to sell Volvo to China's Geely for $1.8 billion).
Geely plans to begin production of Volvo S60 cars and XC90 SUVs in China.
Volvo has a production facility in China through a tie-up with local firm Chang'an Automoble to make S40 cars and a version of the S80 sedan.(See: Geely seeks government sales to expand Vovo's Chinese market share).
The automobile sector in China has been robust this year with companies like Honda, Toyota sales increase many fold in the Chinese market.