Volvo eyes luxury sedan buyers with XC90 Excellence

Around the time Volvo launched the new S90 sedan in India, it also revealed the S90 Excellence elsewhere in the world. Volvo’s most luxurious sedan yet, the S90 Excellence is built on an extended wheelbase version of the S90 and is unique for its three-seat layout with the missing front passenger seat allowing the rear seat occupant to really stretch out. Unfortunately, the S90 Excellence will not be made in the right-hand-drive form, which rules it out for countries like India.

However, Volvo India is confident it can cater to discerning luxury car buyers solely with the XC90 T8 Excellence that was launched here earlier this year. The fully-loaded Excellence sits at the top of the XC90 range and features a four-seat layout in place of the standard model’s three-row arrangement, with emphasis on rear seat comfort. While India deliveries will commence only in 2017, the model has received 50 bookings so far. The number may be small in absolute terms but, then again, estimates suggest the overall market for cars priced over Rs 1 crore is in the region of just 300 units per year.

What seems to have worked in the XC90 Excellence’s favour is that it is drawing attention from luxury sedan buyers. “The customer base for the XC90 T8 is not the biggest since it’s quite an expensive car. But I am quite positively surprised with the results so far. I definitely think we are looking at sedan customers as well. People who look for a comfortable car with reclinable seats and ventilation get everything in the Excellence. You also have more ground clearance and the SUV image, so I think we can sort of steal customers from the sedans,” Tom Von Bonsdorff, managing director, Volvo Auto India, told Autocar India.

While the SUV's shape and luxury are keys to the XC90 Excellence’s appeal, what’s helping its case is that it sits in a sweet spot in the market. Priced at Rs 1.25 crore (ex-showroom, Delhi), it competes with full-size luxury sedans rather than any direct SUV rivals. The Range Rover is perhaps the closest rival to the XC90 Excellence in philosophy, but the Rangie’s high pricing (starting at Rs 2.15 crore) puts it in a different price bracket altogether.

Another trump card for the XC90 Excellence is Volvo’s decision to launch it in India as solely hybrid. The T8’s powertrain comprises a supercharged and turbocharged 2.0-litre petrol engine and an electric motor with a combined output of 407hp. To a fair few buyers, the XC90 Excellence has the required green credentials to help them portray the right image at a time when emissions scandals and air pollution are part of everyday talk.

What could work against the XC90 Excellence after the initial excitement, however, is the Volvo badge. The Swedish brand doesn’t yet have the cache of German luxury rivals, though it is amid a resurgent phase with both the XC90 and new S90 having been well received the world over.

Still, Volvo insiders are quietly confident the XC90 Excellence will only grow in popularity and potentially even become the best-selling luxury car over Rs 1 crore in India. Should that happen, rival manufacturers will definitely have something to think about.