A lack of demand for EVs? Not so fast. Volvo CEO Jim Rowan says new electric models will continue fueling sales. Orders for Volvo EVs like the C40 and EX30 are strong.
Volvo was one of the first automakers to commit to going all-electric by 2030. “There is no long-term future for cars with an internal combustion engine,” explained Henrick Green, Volvo CTO in 2021.
The early commitment is paying off. Despite rising interest rates and higher inflation, Volvo expects “strong double-digit” sales growth this year. A silver lining for Volvo has been the growing demand for EVs, including the C40 compact SUV and the new EX30 crossover.
Speaking with Automotive News, Rowan said he expects the new EX30 to provide “reasonably decent volumes” for Volvo next year.
Volvo’s leader explained that with a full year of EX30 sales, the brand should see growth in 2024. The EX30 (see our review) is aimed at a new segment of younger buyers as Volvo looks to expand the brand.
It will start at $34,995 (without $1,195 shipping) as one of the most affordable EVs on the market.
The automaker is also launching its flagship EX90, a premium three-row electric SUV with up to 300 miles of range. Volvo’s EX90 will start at under $77,000 when it goes on sale in the US next year.
Volvo sees EV demand remaining strong
When asked about a “reported slowdown” in EV demand in markets, Rowan said, “We are not seeing any order cancellations or any slowdown in order intake.”
He said this is also true in the US, where orders for the C40 and EX30 are “strong.” Rowan said the company is prepared for a slowdown if needed, “but that is not the case now.”
Volvo’s leader said buyers like driving EVs and that charging at home is a significant benefit for its customers. Rowan believes the automaker is “on course” and in good shape to hit its goal of going all-electric by 2030.
By 2025, Volvo expects to sell 1.2 million vehicles, with half being fully electric, as it works toward becoming an EV-only automaker.
With so much negative coverage on EVs recently, Rowan was asked if it’s impacting plans. Rowan responded, “You have got to tune out that static.” He explained that “some players have proved that electrification has allowed them to create a massive market capitalization.”
“The technology has been proven, and it’s selling in abundance,” said Rowan.
Electrek’s Take
As Rowan explained, there is no “slowdown in EV demand” happening. Global EV sales hit another new record in November, with nearly 1 million units sold.
Earlier this month, the US reached a milestone, with over one million EVs sold in 2023. This is the first time crossing the 1 million mark in one year as demand continues climbing.
With new, more affordable models rolling out and charging options expanding, EV sales are expected to continue rising.
BloombergNEF expects the first IRA-supported EV and battery factories to open in the second half of 2024, with more coming online shortly after. This will likely fuel sales further by enabling cheaper options.
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