‘Move Dealers’ Focus From Customs to Customers’ – MD Volvo India

A couple of months ago, Volvo India had inaugurated its first warehouse in India. Located in the outskirts of Mumbai, this new step allows Volvo to prepare for an assault as the company hopes to double its market share in India by 2020. Generally, volumes are inversely proportional to the cost of the car and the launch of the all-new XC40 crossover will help Volvo post some healthy numbers this quarter.

Once that happens, more and more owners of Volvo cars will come to expect a turnaround time for repairs that is comparable to the ‘big three’. The new warehouse will help in that regard. It must be noted that the German carmakers have been around assembling cars in India for much longer while Volvo only commenced operations in October 2017. But, they’re marching forward with a noticeable aggression.

Benefits for Volvo dealers:

– Zero investment required towards maintaining inventory of slow-moving parts
– No paperwork and dealing with customs
– Easier to satisfy customers with quicker turnaround times
– Overnight shipping from Volvo’s Bhiwandi warehouse

Benefit for Volvo car owners:

– Dramatically shorter timeframe for repairs

While speaking with AutoPunditz, Charles Frump, MD Volvo Cars India, said:

“It has a big impact on our dealers. They’ve done a great job of maintaining a good inventory of parts so far.

Instead of investing a lot of capital and energy into maintaining an inventory, the dealers can expect a better profitability, maybe they can advertise more. Or have the same employees who used to handle the customs paperwork to work with the customers and help them.

If it’s a fast moving part then the dealer will obviously have adequate stock to serve the clients. Everything else they can have it shipped overnight from our new warehouse. This doesn’t sound as exciting as the launch of a new car but it helps the dealers and our customers at the same time. The dealers are definitely very excited about this.”

(The article is written by Mahesh Yadav. He is a car enthusiast and always look forward to new tech. He loves it when a great blend of the two shows up.)

3 thoughts to “‘Move Dealers’ Focus From Customs to Customers’ – MD Volvo India”

  1. Volvo cars are known to be the safest at standard variant. At the same time, Volvo is also one of the least reliable car brands in 2017. I guess Indian media is not so active in publicizing such facts. That is good news for dealers as well as they get more money for repairs. Future customers should be aware of that. Volvo should start a better AMC plan for Indian customers and publish all spare parts prices. Luxury car brands should offer 10-year guarantee and AMC to hit the real numbers. That is the pressing problem that entry point customers face. Indian Govt. should see that Volvo like companies are declaring only around 40% of car international price at the customs and evading a lot of money. It is like undervaluing at entry to counter higher customs duty.

    1. Thanks for pointing it out. You’re right. The XC90 was among the least reliable cars Consumer Reports had tested.

      Thankfully, according to CR, the problems were limited to the touchscreen infotainment system. These teething issues can be easily fixed with a software update. Since the infotainment system is common in all new Volvo cars, my guess is Volvo have already fixed it for new as well as existing models.

      However, I’ll certainly put this question forward the next time I get a chance to speak with any of the top company reps.

      1. Some of the Volvo declared price figures at customs entry points: Data from Zauba.
        Nov 22 2016 87033291 NEW VOLVO CAR V40CC VIN:YV1MZ79H0H2119820 ENG:D4204T9 1734105 2.0L DIESEL 1969CC 150HP 4CYL CLR:DENIM BLUE Belgium Chennai Sea UNT 1 INR 658,482
        Similarly for all other cars
        XC60 – 1,114,725
        None of the Volvo cars were of declared value more than 20 lakh INR. This is unreal whether it is CKD or CBU. I understand that India customs duty is much higher. But they should not do this. BMW , Audi and Mercedes are not doing the same as per data a I see prices close to European market price minus VAT. Even the Suzuki or Hyundai export prices are on par with Indian market prices for high spec considering added safety features. Do we see it as real price of these cars or Volvo cheating Indian Govt. ? Again media is not worried on these aspects as all that glitters is gold.
        Another fishy aspect is none of the luxury car oems publish prices on the web. Is it a norm that rich customers should not look at prices?

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