Volvo isn’t keen on following Tesla and won’t lower EV pricing.details here

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Volvo is not keen to follow the trend of lower prices for electric vehicles, which has been set by Tesla. Tesla CEO Jim Rowan said the Swedish luxury car brand has no current plans to lower prices on its electric vehicles, Reuters reported. The automaker’s comments come as Tesla slashes the price of its electric vehicles by as much as 20%, kicking off what some are calling a full-blown EV price war.

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Updated on:
February 12, 2023 at 12:43 am

The Volvo XC40 Recharge is the Swedish automaker's best-selling electric car.  (HT Auto/Sabyasachi Dasgupta)
The Volvo XC40 Recharge is the Swedish automaker’s best-selling electric car. (HT Auto/Sabyasachi Dasgupta)

However, Volvo has made it clear that it has no intention of participating in a price war. The automaker said demand for its electric vehicles was strong and there was a large order backlog. “We’re not seeing (price cuts) at the moment. The demand for our (pure electric cars) is the highest we’ve ever seen, and it’s backlogged,” Volvo chief executive Jim Rowan said.

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Several automakers, including Ford and some EV startups, have jumped on the bandwagon, racing to cut the prices of their electric vehicles to match Tesla’s. Ford has slashed the price of its all-electric Mustang Mach-E by as much as $5,900, and Lucid has started offering deep discounts. VinFast also plans to run promotions for its yet-to-be-delivered Vietnam-made EVs.

However, there are also different situations. Volvo is not the only car brand to announce that it will resist price cuts for electric vehicles. Volkswagen Group CEO Oliver Blume also said the German auto giant has no plans to lower the price of electric vehicles. The public focus is on reliability, he said. He blasted the lack of reliability of Tesla’s electric vehicles. Renault, on the other hand, expressed the same sentiment when it comes to lowering the price of electric vehicles. In fact, VW-owned Porsche has hinted at raising prices on electric vehicles.

Turning to Volvo’s sales performance, the automaker is targeting a three-fold increase in global plug-in car sales in 2022, with pure electric models accounting for 20% of total sales. That’s a record for a Geely-backed European automaker.

First published date: Feb 12, 2023 at 12:43pm CST

https://auto.hindustantimes.com/auto/electric-vehicles/volvo-not-keen-to-follow-tesla-won-t-reduce-ev-pricing-41676184741951.html

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