In an interview with the Reuters Global Markets Forum at Davos on Wednesday, Volvo Cars CEO Jim Rowan expressed unwavering confidence in the electric vehicle (EV) market, countering less optimistic projections from industry counterparts.
Volvo is steadfast in its commitment to achieving “tremendous growth” in EVs, aiming for them to constitute half of its sales volume by the mid-decade and exclusively sell EVs by 2030.
Rowan highlighted Volvo's distinct market position, asserting that the demand for its premium brand EVs surpasses that of mass-market competitors. He emphasized the company's pricing power and the increased disposable income of consumers, making EVs more accessible.
Contrary to the cautious sentiments echoed by some automakers in the past year, Rowan remains bullish about the global growth of electric cars, particularly noting robust demand in Europe. Volvo's strategy deviates from engaging in price wars initiated by competitors like Tesla, as it aims to maintain its premium brand status and sustain favorable margins on electric vehicles.
Addressing challenges in the supply chain, Rowan assured that any higher costs resulting from disruptions in shipping, such as those in the Red Sea, would not be passed on to customers. Volvo's commitment to customer satisfaction was underscored, even as the company announced a temporary halt in production at its Belgian factory due to delayed gearbox deliveries.
Looking ahead, Rowan disclosed ambitious plans for the Indian market, with the introduction of the more affordable EX30 slated for 2025. Despite ongoing industry challenges, Volvo Cars remains optimistic about its role in shaping the future of electric mobility.