Volvo has no plans to challenge low-cost EVs in China as the ongoing price war intensifies. Volvo has adjusted its target for 100% electric car sales and now expects electrified cars to account for 90% to 100% of global sales by 2030.
While Volvo still believes its future is electric, according to CEO Jim Rowan, different markets are moving toward an electric future at different speeds. One of the main reasons for Volvo's change in strategy is China, the world's largest market for electric vehicles. The other is new tariffs on Chinese electric cars in the EU and the US.
According to Rowan, China's new car market has “shrunk” due to a large used car market, something the country has never seen before. And the number of used cars will increase over the years, which will significantly affect the market of new affordable cars.
In addition, Volvo expects better results from premium electric cars. So, in November last year, the company introduced its first electric luxury minivan EM90 in China.
Despite the fact that Volvo recently launched its cheapest electric car – crossover EX30 priced from $28,000 – in China, the automaker has no plans to increase the number of similar electric cars available to it.