In the India arm of commercial vehicle major Volvo now aims to pursue a dual-brand strategy in the country, apparently in order to get more returns through upward brand extension strategy.
Introducing upward versions of popular brand is the strategy of making investments in a segment that offers higher profit margin.
Mr. Hakan Karlsson, executive vice president of business areas at Volvo, said that the premium brand segment had been a big success for the company, and that is why would try to explore more in upward part of the premium segment.
Karlsson also confirmed that Volvo India would work towards dual-brand strategy. He added that the company’s new policy would first be started in the Indian market.
Speaking on the topic, Mr. Hakan Karlsson added, “We think there is a positive potential for this section. We are witnessing market volume of around 10,000 vehicle units in the years to come. This will be a gigantic step and we will place our identical philosophy and idea in public transport.”
According to Volvo, India has a huge potential in the premium segment. The company expects to have a market volume of nearly 10,000 units in the next few years. Karlsson also said that the move was surely a huge one to take.
The company, however, did not utter a single word about the pricing strategy for new value brand segment. When asked, the company’s senior vice president for business region international bus corporation said that details about price and brand would be revealed later.
“We have had a huge victory in premium segment and we wish to discover the upward part of the value product and therefore we have taken a decision to take on a double brand approach internationally and will commence first from the Indian market,” Mr. Hakan added up.
“If we observe the market in the present day, the cost of the customary bus is in the price bracket of around Rs 1.5 million to Rs 2 million,” he said.
“We don’t witness that the premium section is flooded… We are eyeing 25% market share in this section,” he also said.