Following the China Five-Year Strategy Volvo's first S60 low-cost entry into the market

The concern raised by Volvo China's strategic release has not yet cooled down, and the imported Volvo S60 will debut on the market, and it will enter the market with a minimum price of 288,000 yuan. This price is obviously lower than the previous media expectation of more than 300,000 yuan.

The time-to-market, as well as the "affordable" stance on the market, shows Volvo's expectations for the S60.

The 200,000 vehicles in 5 years is a major goal set by Li Shufu for Volvo in China. Before Volvo's new plant in China was put into operation in 2013, Volvo's increase in China was mainly accomplished through imported vehicles.

For Volvo, the new owner of China, the first new car to be released in the "second hometown" is of an unusual nature, with the exception of sales and brand improvement. Therefore, from the S60 will be dazzling golden yellow as the main color, dynamic shape, to the launch of the joint fashion brand Diesel show catwalk, are trying to communicate to the outside world a more young, passionate brand image.

Low price fired the first shot

Following the high-profile release of Volvo China's five-year strategy at the end of February, Volvo subsequently announced that it officially entered the Chinese market as an imported vehicle.

The newly-listed S60 has introduced two models of 2.0T turbocharged and 3.0T twin-turbocharged models, priced from RMB 288,000 to RMB 529,800. At the press conference, applause was heard from dealers who heard this pricing. The media in attendance also rushed to discuss: "This price is quite affordable. We didn't expect everyone to be above 300,000 yuan before."

Indeed, whether it is compared with the market or with domestic competition models, the S60's listing prices are quite "low profile." S60 was listed on overseas markets last year. The price of entry-level models was 32,300 U.S. dollars (approximately 215,000 U.S. dollars). After the introduction of domestic products, it was basically overseas prices plus import tariffs and reasonable profits. The import car market is rare and most imported cars are "very different" from domestic prices and overseas prices in order to ensure substantial profits.

From the domestic market point of view, the main competitors in the S60 price range are the Audi A4L, Mercedes-Benz C-class, BMW 3 Series and other strong competitors. From the point of brand premium ability, Volvo is not as good as the German three, but the price is more advantageous, at least 20,000 yuan lower than the same level models. The Volvo S60 entry-level turbocharged 2.0T engine comes with a 6-speed PowerShift dual clutch transmission. Audi A4L uses 2.0T engine with 8-speed CVT transmission, starting price 309,800 yuan; Mercedes-Benz C200 CGI uses 2.0T turbocharged engine with 5-speed automatic transmission, starting price of 348,000 yuan; BMW 320i uses 2.0 naturally aspirated engine with 6 Block automatic transmission, starting price of 345,000 yuan.

The "gorgeous" status of imported cars is lower than the price of domestic cars, and the S60's appearance on the ups and downs of the market.

In Volvo's global and China strategy, the S60 is an important strategic product. As a new generation of products that Volvo began to develop several years ago, the S60 represents a new understanding and new interpretation of Volvo's needs for high-end car users, placing hope on Volvo's revival.

In the Chinese market, this product following the launch of Volvo China's strategy was the first step in the market of Volvo Li Shufu, and it was crucial to fire this gun.

Volvo China's strategy for the next five years, annual sales of 200,000 vehicles is one of the important goals. This is a big challenge. Last year, Volvo sold just over 30,000 vehicles in China. At present, the sales volume of the domestically produced S40 and S80 vehicles is not good and the output is constrained by the capacity of the OEM company Changan Ford. Before the Volvo Chengdu plant was completed and put into operation in 2013, Volvo’s sales in China would increase depending on imported vehicles such as the S60.

Not only that, the S60 is also likely to be the first Volvo-made car in the future. As far back as Geely's acquisition of Volvo, Changan Ford has reported that the S60 will be made domestically. After Volvo made a move, although it has never formally disclosed the domestic-made car plan, many private sources have pointed out that a homemade car is Volvo S. Series of important models S60.

The head of Volvo China Sales Company stated that the company’s internal sales expectation for the S60 is to reach 10,000 this year.

Brand rejuvenation

The S60, with its high expectations, not only shoulders heavy sales but also improves the brand.

The Volvo S60, which was brewing at the time of the crisis, was placed high hopes. From the positioning to the design, bold innovations were adopted. For example, the appearance of a Volvo model was changed from one generation to another, and the dynamic fashion line was changed. Even the main color was very outstanding. Golden. While adhering to security, it also pays more attention to handling and provides more powerful motivation.

Behind these bold changes, all come from Volvo's new understanding of the needs of high-end car users. “In the future, the premium car users will be younger, more passionate, more individual, and love more powerful power and better control.” At the S60 listing conference, engineers from the Modelling and Power Division from Sweden introduced the car. At the same time, performance emphasizes Volvo's new understanding of users: young and passionate.

This is what the Volvo brand needs in the second hometown of China. In China, the young car consumption market, the average age of high-end car owners is younger than that of foreign premium car owners. Those stylish SUVs are very popular in China's imported car market.

In addition to the rejuvenation of the user community, Volvo also needs the S60, a stylish and dynamic model, to change its "dim" image in China.

Due to poor profitability, the owner changed hands, and Volvo, which has the reputation of “the safest” car, has gradually lost its position in the high-end car sector in recent years. Especially in the Chinese market, the loss of the first domestically-made car S40 is not only in terms of sales volume but also in the Ashkenazi and Audi lines. The high-end car is a far cry from the front, and the user's reputation with Mondeo's communal line and general workmanship also pulled down the brand base of Volvo's imported car collection.

In the eyes of the outside world, the underlying causes of Volvo's lagging behind in the global and even Chinese markets are slow product and technology updates and single products. "Volvo's widening gap with rivals such as Audi, BMW and Mercedes-Benz in the competition is mainly due to its weak independence, slow running, and unsatisfactory product technology. Competitors are constantly introducing new vehicles and new technologies to enrich product lines. However, Volvo is subject to a major shareholder and there is not enough investment in product technology renewal. There are not enough new products and technologies, and the impression given to consumers is naturally boring," said Zhongshi, an auto analyst.

In this context, the stylish S60 will join the fashion brand catwalk in addition to the launch of the show, and will then host a series of driving challenges in the country to create a safe and fun driving product image.

"We hope that everyone will see a younger Volvo," said Sun Wei, director of marketing at Volvo China Sales Co., Ltd.