Volvo Car Malaysia records 35% sales growth in 2018

Volvo Car Malaysia records 35% sales growth in 2018

Last year was a great one not just for Volvo Cars globally, but for Volvo Car Malaysia (VCM) as well. The local unit recorded sales of 1,384 units in 2018, a 35% increase from 2017 (1,021 units) and a 48% jump from 2016 figures (934 units). The company says that the growth is testament to the transformation plan that was put into motion since the introduction of the XC90 in late 2015.

Malaysia is Volvo’s regional production hub, and last year, the company exported 1,889 units of the V40, XC40, S60, V60, XC60 and XC90 to Thailand, Taiwan, Philippines and Vietnam. This was possible due to investments made to the Shah Alam plant to accommodate more volume and new platforms such as the Scalable Product Architecture (SPA underpins the 60 and 90 range) and the Compact Modular Architecture (CMA is used by the XC40).

The transformation plan is a multi-pronged strategy that involves an overhaul of retail operations, customer touch points, and product offerings. “From a consumer standpoint, the first visible change to our existing retail operations is the implementation of Volvo Retail Experience (VRE), a dealer standard that perfectly complements our new and exciting product line,” said Lennart Stegland, MD of VCM.

Volvo Car Malaysia records 35% sales growth in 2018

VRE is a comprehensive standard that covers critical aspects of a dealership and aims to bring a more customer-focused experience based on Volvo’s Scandinavian-inspired values: from the look and feel of the showroom to the quality of service rendered. The transformation also took customer service experience into consideration. Volvo’s Customer Experience Management scores, gathered from a survey of service customers, had doubled from 2017.

Volvo Service Agreement was unveiled last year. This service agreement includes a comprehensive service package that covers replacement of most wear-and-tear parts (excluding tyres), giving owners the freedom of choosing between three or five year plans.

“It is common practice within the industry to include the cost of services packages into the sticker price of the car. We are challenging this by being transparent about these costs and letting the customers select a plan that is more suited to their individual preferences,” added Stegland.

This year will see VCM roll out a new service concept called Volvo Personalised Service. A new management system to ensure optimum availability of parts called Volvo Managed Inventory will also be introduced this year.

As for Volvo’s dealership network, VCM has grown its nationwide presence to a total of 11 dealerships including the recent re-introduction of the brand in Kuching, Sarawak. This year, VCM is aiming to expand its network to locations that are currently not represented by the brand.

On the financial services front, VCM had introduced Volvo Car Leasing – a first for the brand in Southeast Asia – that lets customers enjoy Volvo ownership minus the usual restrictions of a hire-purchase agreement. The company plans to introduce Volvo Insurance in partnership with AXA Insurance later this year. VCM is projecting double-digit growth in 2019, propelled by the XC40 SUV and the opening of more retail locations.

On a separate note, VCM has announced the appointment of Nalin Jain as its new MD, replacing the retiring Lennart Stegland from March 2019. Before taking up this role, Jain was the CFO of Volvo Auto India. He has over 20 years of experience in the automotive, consulting, and technology fields; and holds a master’s degree in engineering from State University of New York and an MBA from the Sloan School of Management in MIT.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Roti john Sdn Bhd on Feb 01, 2019 at 5:47 pm

    Proton Malaysia records 50% sales loss in 2018. Habisla john!

    Like or Dislike: Thumb up 7 Thumb down 17
    • YB Kunta Kinte on Feb 01, 2019 at 6:01 pm

      Volvo ws doing badly before. Then Geely took over. They not only made global staff work harder, they also made Malaysian staff work harder. Today, Volvo Malaysia is making big time sales due to sheer hardwork

      Geely is doing the same to Proton. For 20 years, Proton staff just lepak, rilaks and kuat MC and tuang kerja. Proton plant has a big MC and tuang kerja problem.

      But ever since Geely took over 6 months ago, no nonsense now. All must work hard. No lepak, no MC, no main awek kilang, no lepaak kantin minum teh 8x etc

      It is all hard work

      You will see Proton Malaysia soon improving in sales because of this hard work ethics from Geely

      Like or Dislike: Thumb up 25 Thumb down 3
    • Muzaffar on Feb 02, 2019 at 10:47 am

      Volvo parts are far far far more expensive than Mercedes or BMW.

      Thanks to Geely! Wait wait…..Proton X70 owners also gonna kena high parts prices soon. Same owner mah!

      Like or Dislike: Thumb up 17 Thumb down 7
  • tokmoh. on Feb 01, 2019 at 6:16 pm

    Good. The premium segment now more educated and making the right choice!

    Volvo, Mercedes, Geely > all

    Like or Dislike: Thumb up 15 Thumb down 17
    • Good. The premium Proton X70 sold alot too.

      Like or Dislike: Thumb up 8 Thumb down 0
    • Osaka girl on Feb 02, 2019 at 6:13 pm

      Merz increased 1% in Malaysia is equivalent to 90% increased of Volvo car volume. 35% growth from 800 vehicles sold a year os just a joke. Long way to go to catch up premium Merz and Bmw

      Like or Dislike: Thumb up 7 Thumb down 6
      • Go back to school and learn your stats again dude. No point produce a lot but only gain 1% sales compare to produce less but can sale 35%.

        Like or Dislike: Thumb up 7 Thumb down 3
        • Osaka boy on Feb 04, 2019 at 2:57 pm

          Cx3 is any time more premium than xc60 and 40

          Like or Dislike: Thumb up 2 Thumb down 11
          • Osaka Boyle on Feb 04, 2019 at 7:39 pm

            CX3 is just a RUBBISH ,SMALL & JUNKY SUV

            Even X70 is anytime more premium and better looking than the Dinosaur CX3

            When park side by side with XC60 and XC40 , the CX3 looks a typical SHIT SUV just the X1 & like the saloon AUDI A4

            Like or Dislike: Thumb up 4 Thumb down 0
          • YAB Alberto on Feb 07, 2019 at 7:01 am

            Lately CX fai fly like milo tin into the sea…

            Like or Dislike: Thumb up 1 Thumb down 0
      • Merz Kaki on Feb 04, 2019 at 4:48 pm

        Merz sales increased by 20% a year. Volvo may needs 99 years to catch up the sales.

        Like or Dislike: Thumb up 1 Thumb down 4
        • Audi Fans on Feb 04, 2019 at 7:42 pm

          PROTON sales is 10 years ahead of the JUNK & TAXI MERCEDES

          MERCEDES SALES WILL TAKE 100 YEARS TO REACH PROTON LEVEL IN MALAYSIA

          Like or Dislike: Thumb up 3 Thumb down 1
  • Chesney Hawkes on Feb 01, 2019 at 8:40 pm

    When did the XC40’s CMA platform architecture become the MCA architecture? Paultan.org creating new platforms for Volvo that they didn’t even know about? Now that’s impressive

    Like or Dislike: Thumb up 2 Thumb down 0
  • To the basher: HAHAHAHAHAHAHAHAHA!!!!!!

    VolvoCar, Geely, P1, Mesidis, VolvoTrucks, Lotus, L&C > all

    Like or Dislike: Thumb up 17 Thumb down 12
    • Rahman on Feb 02, 2019 at 11:42 am

      This is Geely success. This is China success. Don’t syiok sendiri when foreigner do all the work

      Like or Dislike: Thumb up 10 Thumb down 9
      • Engineer on Feb 03, 2019 at 6:15 pm

        Is this like how you “syiok sendiri” when telling the world that Aruz is based on Rush that is “from Japan”?

        Like or Dislike: Thumb up 5 Thumb down 0
    • Razali on Feb 02, 2019 at 2:40 pm

      Typical Malaysian. Tumpang glamour. This is 100% Geely car. Proton got ZERO parts in it. Shameless

      Like or Dislike: Thumb up 4 Thumb down 7
      • Engineer on Feb 03, 2019 at 6:18 pm

        Let me spoil your party by reminding you of these Proton parts being put into this car;
        “In any case, converting a left-hand drive car to a right-hand drive one isn’t as simple as moving the steering wheel and pedals to the correct side. Aside from a completely new dashboard, switchgear, power window buttons and even the front seats, there would also need to be changes to the mechanicals as well.

        Often, the engine and gearbox of a left-hand drive car is in the way of where the steering column would be on a right-hand drive one, so things would need to be moved around to fit. As a result, developing a right-hand drive version of a car originally designed for left-hand drive use takes a lot of time and effort, as the last thing you’d want is a bad conversion.

        Forget the aftermarket kits used on American cars, such as the CKD Ford F-150 sold by Hamawangsa Kredit, or French cars with the bonnet release and fuse box (resulting in a tiny glovebox) on the wrong side – even a company with the industrial might of Mercedes-Benz can be guilty of subpar right-hand drive conversions, with off-centre steering wheels and cramped footwells.”

        Like or Dislike: Thumb up 9 Thumb down 0
      • Damon Lee on Feb 04, 2019 at 12:18 pm

        Your Perodua is no different.

        Like or Dislike: Thumb up 3 Thumb down 0
  • Old horse on Feb 03, 2019 at 4:14 pm

    Lol, selling 38 cars above 100 is also 38%
    Volvo Malaysia sales such disappointment in bolehland due to pricing but their export is good for local manufacturing

    Like or Dislike: Thumb up 3 Thumb down 3
  • Old Horse

    What happen to your high praise on Audi in Malaysia.

    So at least Volvo sales is way better than the Audi Kaput sales in malaysia ( only 150 units for 2018)

    So Audi is total sales destruction in Malaysia and Old horse is so “thick skin” to comment on others whereby he himself is already been dump into the rubbish bin.

    old horse please get a Life .. do not dream

    Like or Dislike: Thumb up 4 Thumb down 0
 

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