China, to Stimulate Volvo's Growth

Fredrik Arp, Volvo's chief executive officer said that China is the automaker's 'most exciting' auto market around the globe. He added that Volvo's growth in said nation will serve as a vital part of its global aim, which is to sell 600,000 vehicles per year starting this year until 2009. Arp added, "In the next five to 10 years, we believe that China will move up to second place in Volvo Cars' sales chart."Volvo Cars China claims that the company's sales in the nation are anticipated to reach 9,000 vehicles this year. Said figure is 80 percent more from that of last year's sales. Next year, the automaker expects to boost sales at the same rate or more of that anticipated this year.
In China, last year's Volvo sales stood at 5,000 units. This year, in the month of July, Volvo has started the production of S40 compact sedan. The production is a joint venture of the automaker with Japan's Mazda Motor and China's Chang'an Motor in Chongqing Municipality. Said venture is under a technical licensing deal. Arp sees the business venture as "a big step" towards the goal of improving China sales.
Analysts said that premium cars like Volvo cars have huge growth potential in China. At present, wealthy population, which is the market of Volvo is expanding rapidly in said nation.