China will most likely overtake the United States this year as Volvo’s biggest sales market worldwide, with the Chinese-owned company expecting record sales of at least 80,000 units.
Volvo’s growth in China is impressive, from 61,146 units in 2013 to at least 80,000 units in 2014. Volvo expects to sell around 60,000 vehicles in the United States this year. China’s premium car segment is forecast to grow by 20 percent in 2014 and Volvo expects to outpace this growth in 2014. The brand’s long-term goal is to sell 200,000 cars a year in China.
For that to happen, Volvo Cars has announced that it will make China the centerpiece of its global expansion plans by setting up new manufacturing facilities to build its latest models. Earlier this month, Volvo has significantly expanded its manufacturing facility in Daqing, China. The plant will build an all-new premium sedan, most likely the next-generation S80 (which may be called S90).
Also, this month, Volvo has started production of the XC60 at its plant in Chengdu, with the facility also producing the S60L long-wheelbase sedan. The XC60 is Volvo’s best-selling model worldwide and in China. Global sales of the XC60 have increased 20.4 percent to 98,309 cars in the first nine months of 2014, while sales in China are up 32.3 percent to 24,940 cars over the same period.
Besides the Chengdu and Daqing vehicle assembly plants, Volvo Cars also operates an engine plant in Zhangjiakou, northwest of Beijing, which supplies engines to Chengdu and Daqing. Volvo Cars is majority owned by China’s Zhejiang Geely Holding.
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