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Updated January 17th, 2024 at 22:06 IST

Competitors picture of Volvo cars' gloom and doom false: CEO Jim Rowan

Jim Rowan said Volvo cars is witnessing "tremendous growth" in EV market.

Reported by: Business Desk
Volvo Cars India
Volvo Cars India sales rise | Image:Volvo Cars India
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Volvo's EV pie: Exuding confidence of a robust growth, Volvo cars CEO Jim Rowan Volvo Cars said the company is witnessing "tremendous growth" in the electric vehicles market

Addressing Reuters Global Markets Forum on Wednesday, Rowan countered projections of a gloom and doom from rival companies. The carmaker, which aims for electric vehicles (EVs) to contribute half its sales volume by mid-decade and to sell only EVs by 2030, said the growth in demand for its premium brand was stronger than that of mass-market rivals.

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"We have much more pricing power and people have got more disposable income so they can afford it if they want to drive an EV," Rowan said.

The Volvo Cars CEO said that, in contrast to others, he saw good growth globally for electric cars, with particular strong demand in Europe. Over the past year, many automakers have warned that the anticipated growth of EVs has been slow to emerge due to poor demand, heavy price cuts, lower subsidies, and supply chain issues.

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Volvo has previously said that it has no intention of participating in the Tesla-ignited price war due to its position as a premium brand and saw good margins on its electric cars. Higher costs caused by disruptions on shipping in the Red Sea would also not affect customers, the CEO said, who stated that any additional costs would be absorbed by Volvo.

Last week, Volvo said it would halt production at its factory in Belgium for three days as a result of a delivery of gearboxes being delayed due to the disruption.

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The CEO also told Reuters that he had high ambitions for India in the next five years with plans to launch the more affordable EX30 there in 2025. 

(With Reuters inputs) 

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Published January 17th, 2024 at 22:04 IST

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