In 2021, Volvo Cars continued to make steady progress in China, and the annual sales growth of 3.1% was gratifying. As a second-tier luxury brand, although there is still a lot of room for improvement in market share and popularity, the sales growth is inseparable from the electrification transformation of the volvo brand. Driven by the electrification transformation of the brand's entire product line, although there are not many models, the category is fully covered, which is indeed a minority of luxury brands. Just at the end of the year, we will review the Volvo brand in China in 2021 from the three aspects of sales, new product planning and key events.
● Full year 2021 sales
Recently, Volvo Cars announced its 2021 sales report card. Volvo sold 642,000 units worldwide in 2021, up 12.4% year-on-year. Chinese mainland market, the total annual sales volume was 171,400 units, an increase of 3.1% year-on-year. Compared with the sales volume of other second-tier luxury brands, the growth rate ranks second, and the sales volume ranks third, with an obvious upward trend.
The electrification of the entire product range is a credit to this
Among them, volvo XC60 sold more than 65,000 units in the whole year, an increase of 6% year-on-year; XC90 increased by 16% year-on-year; and S60 sold nearly 28,000 units, an increase of 29% year-on-year. In terms of electrification, RECHARGE models increased by 63.9% year-on-year, accounting for 27% of global sales for the whole year, a record high; Chinese mainland market RECHARGE models increased by 77% year-on-year in December 2021 and 96% year-on-year.
Volvo has previously proposed to transform into an electric vehicle brand by 2030. According to the plan, by 2025 Volvo's sales will be half pure electricity and half hybrid vehicles. In the Chinese market, Volvo will launch pure electricity production models every year in the future. In addition to products, in terms of infrastructure construction, at present, Volvo has covered the core car scenes of car owners through the layout of four major scenarios of "home charging, dealer charging, public charging, and emergency charging".
● 2021 new car product carding
In 2021, the Volvo brand mainly made mid-term modifications to the S60, XC60 and S90 in terms of new cars, the biggest highlight is the replacement of the new B series engine and electronic gear levers, and the Volvo logo is also replaced by a new flat shape. The biggest change at the engine level is the addition of a 48V light mixing system, using ISG motors to comprehensively improve the quality of the two dimensions of starting power output and start-stop smoothness. However, 2022 is a small year for Volvo products, only a new pure electric model C40 is on the market, and Volvo's sales target of 200,000 vehicles this year is not small.
Volvo Shanghai directly operated exhibition hall
The direct operation model has become a hot word in the automobile circle nowadays. Direct sales can bypass the traditional sales model, further transparent product prices, manufacturers and users, the market to produce more direct contact, can respond to changes in users and the market faster. The key to the direct sales model that has aroused consumers' attention is the decline in product prices. In the channel layout of electrification products, Volvo has also begun to test the official direct sales model. From November 1, 2021, Volvo's plug-in hybrid models will be sold directly in Shanghai, and users in Shanghai will enjoy a fair and transparent unified price and a simpler and more convenient purchase process. After changing to the direct sales model, Volvo's plug-in hybrid models have been reduced in price to varying degrees, with the highest drop reaching 135,000 yuan. Volvo as a luxury brand to test the water direct operation model is also to increase sales, after all, under the dual influence of new energy and new domestic car manufacturing forces, Volvo accelerated the new development direction of comprehensive transformation and electrification.
● 2021 brand event node
Volvo XC40 pure electric battery water resistance test
Volvo Children's Day video
Volvo Cars originated in Northern Europe, and the core philosophy of the brand is to produce safe, luxurious cars. But what's so good about it? In fact, not many people can say why it is very systematic. Therefore, if Volvo wants to truly achieve a breakthrough in marketing communication, it must break through the previous communication mode and use a more direct, interesting and acceptable way to disseminate. In 2021, Volvo launched the series "New Fan", which focuses on safety, harvesting a wave of consumer praise with hard-core product strength and shocking visual effects. Volvo's three very shocking and interesting marketing videos are from the overall immersion in the fish tank, and finally safely driven XC40 pure electric version; the president played stunts, by Volvo Car Group Global Senior Vice President, President and CEO yuan Xiaolin personally stood on the 6 Volvo cars hoisted high in the air to show the strength of the body of the "high-altitude stacking music"; and then to the "Little Devil Driving Children's Day Video, the XC60 driven by children remotely piloted through many obstacles to show the active safety performance of the vehicle."
Through this interesting video, Volvo spread the sealing advantages of the XC40 pure electric version of the battery, the super stiffness of the Volvo cage body, and Volvo's leading active safety technology, which provides driving pleasure in addition to providing safety and security.
Optimize the after-sales experience and reduce the zero-to-whole ratio of the brand
In 2021, Volvo has made "fierce efforts" to reduce consumer maintenance costs and save maintenance time. According to the 13th report recently released by China Insurance Research Institute, the Zero Ratio of volvo XC60 has become the lowest in the same class (luxury SUV), while the zero ratio and burden index of the S90 have dropped the most in the luxury car class. The burden index of common accessories has also dropped from 24 in the previous period to about 21, which is lower than other luxury brands. The burden index of common accessories has also dropped from 24 in the previous period to about 21, which is lower than other luxury brands. This means that volvo's spare parts prices continue to decline, as the "big head" in the cost of car repair, the reduction of parts prices will inevitably reduce the user's cost in repairing the car. Combined with Volvo's previously launched parts lifetime warranty, car owners can truly enjoy the peace of mind and use of the car environment.
● Summary
For Volvo in 2021, the products of various market segments of cars and SUVs have become explosive models, and they will not be left behind by the mainstream of the market. Coupled with the policy of comprehensive transformation to new energy, sales in the context of chip shortage are positive year-on-year growth, and such achievements have also laid a good foundation for the re-departure in 2022. Taking the lead in responding to the electrification transformation and getting involved in young marketing has resonated with young people and ensured the sustainable development of the Volvo brand in the future. Although there are not too many new products in 2022, but to stabilize the current situation, deep ploughing the dual-line development of fuel vehicles and electrified models, domestic models + imported models are crucial to sales growth, I believe that volvo will still hand over a better report card at the end of this year.