The rising population in China, the growth of the economy, and increase in disposable income, are factors driving the vehicles market in the country. If you ever get a chance to visit China, driving through the traffic clogged streets of Shanghai, where vehicles don’t stop even as the traffic lights turn red, and where honks are life saviors, you will understand the reason behind the booming automobile industry in the country. Therefore, it is no surprise that China is the biggest market for Volvo.
Volvo is a Swedish company and is renowned globally for manufacturing premium vehicles. These vehicles are much in demand in China from the transport companies and driver who wants to ensure protection of him as well as the passengers. According to reports, last year motorists in China bought 81,221 Volvos. The number represented 17.4 per cent of the total of 466,000 Volvos bought globally. The home market of Sweden accounted for 13.2 per cent of the total sales of the company. Meanwhile America represented 12.1 per cent of the total sales and Britain accounted for 8.8 per cent.
China, as it is known by all, is the largest market for vehicles and automobiles. The country accounts for a 28 per cent of the 89 million vehicles sold this year, as observed by IHS. This is one of the main reasons why China is considered as a vital market for Volvo.
While for many Volvo is a just a Swedish entity, it will be a surprise for many to know that the organization is actually owned by Geely Holding Group which in turn is owned by Chinese billionaire named Li Shufu. He is ranked as the 56th richest man in China with a fortune of US$3 billion.