Volvo: Rallies may dent sales, but forecast remains the same

Volvo: Rallies may dent sales, but forecast remains the same

Volvo Car (Thailand), the Thai unit of the Swedish automaker, believes the ongoing political strife will inevitably affect sales of luxury vehicles in the country.

Despite political disruptions, Mrs Chantana is confident of Volvo reaching its full-year sales targets in Thailand.

The endorsement of an amnesty bill by the House of Representatives on Nov 1 has triggered street protests by several groups including academics and businessmen.

Company president Chantana Vatanaromya said politics is always a key factor for consumers.

While overall car sales are expected to be slow, Volvo has yet to revise down its sales projection.

All luxury car makers expect sales this year to continue growing, but sales of mass-market cars may decline after the government's first-time car buyer scheme expired last year.

Sales of premium cars stood at 15,000 to 18,000 units last year, and Mrs Chantana forecasts growth in a range of 10-30% to 19,000 vehicles, driven by strong purchasing power in the middle- and high-income groups.

Having sold 1,854 vehicles last year, Volvo hopes the volume will rise in line with market growth.

Sales slightly dropped in the first nine months of this year to 1,288 vehicles from 1,305 in the same period last year, said Mrs Chantana.

But she is confident the firm will achieve its sales target.

Normally, 20-30% of full-year sales come in the fourth quarter, and Volvo will boost them this year by offering new models at affordable prices.

Yesterday, Volvo introduced the V40 Cross Country five-door hatchback, locally with a price tag of 1.92 million baht.

The V40, powered by a five-cylinder two-litre petrol engine, has a six-speed automatic transmission.

All Volvo cars sold in Thailand are imported from the company's assembly plant in Malaysia.

Six minor-change models are sold locally - the S60, S80, V40, V60, XC60 and XC90 - priced from 1.68 to 3.799 million baht.

The vehicles are equipped with Volvo's new Cyclist Detection system with full auto-brake.

The system automatically stops the car whenever there are pedestrians, cyclists or runners in front.

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