Volvo: will not follow Tesla to lower the price of electric vehicles
CTOnews.com, February 11 (Xinhua) Swedish car company Volvo said it would not follow Tesla to lower the price of its all-electric vehicles, citing strong demand for electric vehicles and a large backlog of orders.
Sweden's Volvo CEO Jim Rowan told Reuters that it had no intention of lowering prices. "We have no intention at the moment to cut prices. Demand for our pure electric vehicles is at its highest level, including the backlog of orders."
CTOnews.com learned that after Tesla's car price was cut by as much as 20%, some people thought the manufacturer would start a full-scale price war for electric vehicles, followed by Ford, which cut the price of its all-electric Mustang Mach-E by as much as $5900 (currently about 40179 yuan). Lucid offers substantial discounts, and VinFast plans to promote electric vehicles it has not yet delivered in Vietnam.
As for Volvo, its global sales of plug-in cars tripled in 2022, with all-electric models accounting for 20% of total sales-a new record for the European carmaker backed by Geely. Nonetheless, Volvo's sales in its product line, including gasoline and diesel models, fell by 12%, and 2023 is expected to be "another challenging year" as Volvo experienced supply chain problems related to the epidemic in 2022.
Volvo is not the only car company that has announced that it will boycott price cuts for electric cars. CEO Oliver Blume, the Volkswagen group, said it had no plans to cut prices and said it was focused on reliability rather than following Tesla in this regard.
At the same time, Renault, the European brand, said surplus value and stability were the reasons for its stable price strategy, while Porsche, the higher-priced brand in the Volkswagen portfolio, could actually raise prices.
Volvo currently sells two all-electric models in the United States, including the C40 Recharge for $55300 (currently about 377000 yuan) and the XC40 Recharg for $53550 (currently about 365000 yuan), and will start delivering three-row seven-seat EX90 SUV at an estimated price of $80000 (currently about 545000 yuan) in early 2024.
