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Volvo cars maybe on the way to really crack open the Chinese market

Sunday, 10 November 2013
That Volvocars has had it tough in the Chinese market is nothing new according to past news reports but there seem to be a strategy on the way for the Chinese owned Swedish brand to finally break into the Chinese auto market and really get big.

Media reports in Sweden hold that the Chinese politicians and officials are being urged in a secret negotiation to adopt Volvo cars as their official cars over Audi. If that happens then Volvo will soon overtake the Germans in the Chinese market.volvocars

According to the reports negotiations has completed that will make Volvo and Hongqi car manufacturer to supply all cars that cost more than 180,000 yuan (about the same in Swedish Krona) to some of China's authorities.

China is the world’s largest car market at this moment given its population, but domestic brands account for only 0.2 percent of the luxury segment - cars that cost more than 200,000 yuan, reports Swedish business daily, Dagens Industri.

Reports hold that the new leadership of the country wants that to change. Therefore there are calls from as high up as the Chinese President, Xi Jinping that the country's authorities should choose domestic over foreign cars. Chinese authorities spend something like Skr80 billion per year on luxury brands.

Industry and Information Ministry has also made a draft of a car catalogue that lists what cars the authorities should buy and the Swedish media sources say the catalogue is made up of only Chinese car brands.

Volvocar corporation was bought in 2010 by Chinese Geely whose owner Li Shufu was rumoured to have good contacts with the high places in the country's power pyramid.

According to Forbes magazine subsidies such as tax breaks and cheap land accounted for 65 percent of Geely's net profit last year, reports Swedish media sources.
Talking about competition and open markets in China…
By Scancomark.com Team

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