Volvo targets BRIC countries with dual-brand approach
23 November 2010
Volvo Construction Equipment has set a target to take leading positions in the key emerging markets of Brazil, Russia, India and China with a combination of its own machines and those of its Chinese joint venture, SDLG.
Speaking at Bauma China, president & CEO Olof Persson said, "We have set a strategic target to be number one, two or three in the BRIC countries. If you look at revenues, the BRIC countries account for about half of what we achieved this year."
The company will use machines manufactured by SLDG to appeal to what it describes as the "mass market".
"Volvo is a premium international brand and SDLG is a strong Chinese brand for the the mass customer market, " said Mr Persson. This is not a contradiction. It is a logical way to address a very large market with different customer needs. The dual brand gives us a unique opportunity."
As an example of this, Mr Persson says the company is already selling wheeled loaders made by SDLG in Brazil. "It has worked very well in China and Brazil in attracting new customers. How we do it in other markets will be taken step by step but the important thing for us is that we can do it," he said