Earlier this year, Volvo had to drop its goal of selling only electric cars by 2030. And now the Chinese brand's CEO admits that electric cars are harder to sell.
Volvo admits that it is taking longer than expected to sell electric cars in the volume they originally expected.
Previously, the goal was for the brand's sales to consist exclusively of electric cars by 2030. Now Volvo has changed course and is instead working towards "90-100 percent" of their sales in 2030 being made up of electric cars and plug-in hybrids.
According to Volvo Cars' CEO, Jim Rowan, a full transition to electric cars is more time-consuming than expected four or five years ago. In an interview with Automobilwoche, he elaborates on the decision.
– It has become clear that the road to fully electric cars will take a little longer than anyone imagined four or five years ago. That's okay.
Rowan emphasizes that interest in electric cars remains high, especially in countries where there are financial support schemes for buyers.
At the same time, he points out that the production and pricing of models like the Volvo EX30 face challenges. Before this car can be produced in Europe, high costs are expected, which will affect its price.
"The price of that car will increase. We have to decide how much of that increase will be passed on to customers. The higher the price, the greater the impact on sales volume," explains Rowan.
The change in strategy reflects that the transition to electric cars depends on many factors, including market developments and customers' willingness to pay higher prices. However, Volvo still sees electric cars as an important part of its future product range.
The Chinese-owned brand is not the only one that is having more than a little trouble selling electric cars in certain markets. Stellantis, which owns Fiat, among others, has decided to extend the production stop of the electric 500e. The same applies to Maserati.
