Volvo Cars’ President and CEO, Jim Rowan, underscored the significant role China plays in Volvo’s global strategy, stating that it extends beyond being the Swedish premium carmaker’s largest market.
Rowan made these comments on Wednesday during his visit to Shanghai for the groundbreaking ceremony of the fourth phase of Volvo Cars Asia Pacific Headquarters, which will house a battery center and training facility.
“China is far more than just an important market for Volvo’s development,” Rowan emphasized.
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China stands as Volvo’s largest market, with over 180,000 vehicles sold last year, including a 25 percent increase in new energy vehicle sales in the Chinese mainland. These figures accounted for approximately a quarter of Volvo’s global sales, driving them to a record high. However, Rowan noted that China’s role in Volvo’s success goes beyond mere market size.
Rowan highlighted China’s ability to inject “pace” into Volvo’s operations, stating, “China as a country is operating at a higher pace than many other countries, and that pushes our business into a higher cadence, and I think that is always a good thing.”
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He also praised China’s innovation in the electric vehicle (EV) industry, noting its positive impact on Volvo’s knowledge and perception, particularly in smart cabin-related technology.
Despite facing stiff competition in China’s smart EV market, Rowan expressed optimism about Volvo’s position. He emphasized Volvo’s commitment to enhancing vehicle safety through smart technology, distinguishing it from rivals focusing on displays and apps.
Rowan highlighted Volvo’s EX90, an electric seven-seat SUV equipped with advanced technology. The model boasts 16 ultrasonic sensors, eight cameras, five radar systems, and the Luminar lidar system, providing superior visibility even in complete darkness.
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He acknowledged that the transition to electric vehicles has eliminated some advantages enjoyed by premium carmakers in the gasoline vehicle era, such as acceleration. However, he stressed that startups entering the premium vehicle segment must differentiate themselves, citing Volvo’s strong emphasis on safety.
“There are 1.5 billion people in China — we don’t need every customer — but I think there are enough customers in China who appreciate safety, sustainability and Scandinavian design,” Rowan stated.
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Looking ahead, Rowan expressed confidence in Volvo’s performance in 2024, following a record year in 2023 with sales increasing by 15 percent year-on-year, operating revenue rising by 21 percent, and profit soaring by 43 percent.
“We grew last year, even though it was a tough market. I think we will grow again this year, quite considerably. And I think that is because of our technology and our brand position, not only in China but also globally,” Rowan concluded.
