With “tremendous growth” expected for its EVs, Volvo CEO Jim Rowan says the brand is outpacing rivals. Rowan claims Volvo has “much more pricing power” as it rolls out its cheapest EV so far, the EX30, starting at $35,000.
Volvo CEO boasts pricing power for EVs
On Wednesday, Rowan told Reuters at the Global Markets Forum that Volvo sees a growth opportunity in the EV segment.
Volvo’s leader explained, “We have much more pricing power, and people have got more disposable income, so they can afford it if they want to drive an EV.” The comments come as several automakers, like Ford and GM, have scaled back EV investments.
After selling a record 113,419 EVs in 2023 (+70% YOY), Volvo expects to build on its momentum this year.
Volvo’s EVs accounted for 16% of its total sales last year, higher than most rivals and up from 10.9% in 2022.
Rowan has stood by his stance despite others claiming a slowdown in the EV market. When asked about the reported slowdown last month, Rowan said, “We are not seeing any order cancellations or any slowdown in order intake.”
An affordable EV for everyone
The brand’s leader confirmed orders for the electric C40 and new EX30 are strong, even in the US. Volvo’s new EX30, starting under $35,000 (36,000 euros), is one of the most affordable EVs on the market. It’s also Volvo’s cheapest (and quickest) vehicle yet.
The electric SUV will be available in two versions: A single-motor extended range and a twin-motor performance model.
The extended range version includes up to 275 miles of range. Although the performance model sacrifices 10 miles range (265 miles), it packs 422 hp and 400 lb-ft torque for 0 to 60mph in 3.4 seconds.
Volvo calls the EX30 a “cornerstone” of its EV plans. The automaker expects the new EV to become one of its “best sellers in the coming years.”
Meanwhile, Volvo is also launching its first three-row electric SUV, the EX90. Volvo’s EX90 will start at $76,695 in the US to rival the Rivian R1S and Mercedes EQS.
Volvo was one of the first legacy automakers to commit to an all-electric lineup by 2030. Rowan believes the automaker is “on course” to hit its goal of going all-electric. By 2025, Volvo aims for around 50%, or about 600,000 in sales, to be electric as a halfway target.
Electrek’s Take
Despite a slight slowdown in EV sales last month, Volvo will likely turn things around (quickly) in 2024.
Volvo is rolling out EVs in key segments, including an affordable model (EX30), a three-row electric SUV (EX90). It even launched its first electric minivan in China (EM90). These models will join the already popular C40 and XC40 Recharge in Volvo’s all-electric lineup.
The brand will continue to be one to watch as the market shifts to EVs. Volvo’s early commitment to electrification is already paying off.
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