Volvo drives its XC 40 into India at Rs 39.9 lakh, to take on Merc GLA, BMW X1

Swedish luxury automotive brand Volvo today launched the XC40, its smallest sports utility (SUV) in India, at an introductory price of Rs 39.9 lakh (ex-showroom).

This will be the tenth model by Volvo in India, and its third SUV. The XC40 has been on sale outside India since last year. Volvo is offering only one engine and one trim as of now on the XC40, a very unusual move as most launches start with at least three variants.

The XC40 will be powered by 2.0 litre diesel engine having a peak power of 190 bhp. The transmission is 8-speed, all-wheel drive and the top speed of the SUV is limited to 210 km/hr.

The XC40 will be competing against the Mercedes GLA, BMW X1 and Audi Q3 in a segment which clocks 6,000 units sales every year. The XC40 is wider, longer and taller than all its competitors.

Last calendar year, Volvo recorded sales of 2029 units, a growth of 28 percent compared to 1585 units sold in 2016. It had launched three new models – S60 Polestar, V90 Cross Country and XC60 – last year.

The Swedish company is aiming for a 10 percent market share in India’s luxury car market by 2020. The market is presently dominated by Mercedes-Benz followed by BMW, Audi and Jaguar Land Rover.

Volvo has about 21 dealers across the country and has plans to add one new dealer each month over the next five months.

Company officials said that it can look at a petrol variant later but since 90 percent of sales in this segment are diesel it has gone ahead with only a diesel engine.

Some of the key features in the XC40, which are also an industry-first, are radar-based driving assistance, wireless mobile charging, park assist pilot, gesture-controlled tailgate, intersection braking, lane keeping aid, 9 inch centre display, panoramic sunroof and a 13 speaker Harman Kardon sound system.

It comes with premium black upholstery with contrasting door inserts. Steering wheel and gear knob gets leather stitching. In all the company is offering three colours on the XC40.

For now Volvo has decided to import fully built units of the new model as against starting production at the recently inaugurated assembly facility in Bengaluru. Volvo presently makes the XC90 and S90 (sedan) at the Indian facility. Very soon the XC60 will be added to the line-up. The XC60 makes up 25 percent of its domestic volumes.