We were in Sweden to have a quick chat with Jim Rowan from Volvo Car.
Volvo was the first traditional car manufacturer in the world to make a bold statement to have a full electric vehicle lineup by 2030. To make sure this move works with the intended timeline, Volvo Car management targets to have a 50 percent full electric lineup by 2025, which is just 2 years away.
Volvo started the electric vehicle journey with the XC40 Recharge SUV and then came the C40 Recharge SUV which is a dedicated electric vehicle. Next to come (end of this 2023) is the EX90 which is large luxury electric SUV which will be sold alongside the very popular XC90 SUV.
In the coming 3 years there will be a brand new electric vehicle being launched each year by Volvo Car. After the EX90, you will be seeing a small electric car (which has been called the EX30 on social media).
Volvo Car is now only selling plug-in hybrids and electric cars in Thailand and Malaysia and Australia and the rest of ASEAN nations will be following this trend in the coming months.
Meanwhile, Malaysia happens to be Volvo’s hub for production for export to the region and also local sales.
Interview With Volvo’s CEO Jim Rowan In Sweden
QUESTION For Jim Rowan: Interestingly, Volvo’s rivals (the European premium brands) in ASEAN continue to sell compact sedans, hatchbacks and even SUV’s that are either pure petrol powered, mild hybrid powered or a full plug-in hybrid and this allows them to take a large share of the market share.
Meanwhile, Volvo has discontinued the compact V40 hatchback (pictured below) and the lowest priced vehicle on sale is the XC40 Recharge which is about RM65k more expensive than German petrol powered rivals because it is a full electric vehicle.
Malaysia and the rest of ASEAN does not have currency exchange in favor of owning premium electric vehicles as yet and we wonder if Volvo will look into having a lower priced Crossover or hatchback to allow middle class Malaysians to have the legendary Volvo safety and drive dynamics that is out of reach for many right now.
ANSWER From Jim Rowan:
“Well, Volvo is looking at smaller vehicles starting with a SUV that will be smaller than the C40 which will arrive at the end of 2023. This is for customers looking for a lower priced and smaller Volvo electric vehicle.
Let’s note that petrol powered vehicles are only 35 percent efficient because you lose a lot of energy to noise and vibration whereas electric vehicles, especially Volvo’s with our e-Motor are 93 percent efficient. Plus, there is zero Co2 emissions from our electric cars.
Also, price parity between the petrol engine and battery power will be arriving by 2025 and petrol engines will no longer be a priority and electric cars will start being more affordable.
Volvo is making the move right now towards electric to make sure we stay ahead of our rivals by 2025 as we are no longer investing in petrol powered vehicles. We have our own partnership in battery technology, software technology and more. This way we will be able to bring prices down to better our rivals in a couple of years.”
