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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.)