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China to become Volvo's 2nd largest market in 10 years

(Xinhua)
Updated: 2006-11-25 08:36

Swedish auto giant Volvo expects China to become its second largest market after the United States in the next five to 10 years.

Fredrik Arp, president and chief executive officer of Volvo Cars, said at the Beijing Auto Show that the expanding market played an important role in the company's push towards its global sales target of 600,000 vehicles in 2009.

He believed that the Chinese market for luxury cars was at its initial stage and had great potential.

The luxury car market would expand rapidly along with China's economic growth, said Fredrik Arp, adding that 3.8 million passenger cars are sold in China every year and only four percent are luxury vehicles.

At the auto show, Volvo unveiled 10 vehicles -- all latest models -- in its 1,000 square meter exhibition space.

The XC90, a high-end SUV, made its market debut when the exhibition opened on Nov. 18. The V8 executive version is priced at 1.05 million yuan (130,750 U.S. dollars) on the mainland.

The firm also unveiled the new C30 for the first time in China. It is regarded as Volvo's first attempt to open the Chinese market for coupes.

Volvo has granted a licence to the Chongqing-based Chang'an Ford Auto Company to produce and sell its S40 cars throughout China, the first Volvo model made in the country.

Chang'an has said 4,000 China-made S40 cars will be sold by the end of the year.