Volvo Australia is not nervous about cooling EV demand

May 24, 2024

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Regardless of quite a few producers pivoting their electrical car (EV) plans as a result of wavering demand in key markets, Volvo’s native boss is assured the model can stand by its strategic shift to an EV-only vary from 2026.

Talking with CarExpert on the Australian media launch of the brand new EX30 electrical crossover, managing director for Volvo Automotive Australia, Stephen Connor, stated he believes the premium electrical phase in Australia continues to be rising, with the Chinese language-owned Swedish model effectively positioned to go all-electric in 18 months time.

“Globally, everyone is flattening the BEV (battery-electric car) market, ‘oh it’s dropped, it’s dropped’. There are two camps within the BEV market – you’ve acquired the quantity camp, and also you’ve acquired the premium camp,” Mr Connor stated.

“Should you dissect the 2, the quantity camp is the one which’s dropping. Within the premium phase, in case you take a look at Australia alone, it’s nonetheless doing okay… it’s beginning to cool down a bit, however it’s nonetheless rising, it’s completely nonetheless rising – so there’s no have to panic, essentially.

Volvo Australia isn't worried about cooling EV demand — **Volvo EX30**

“The market is what it’s. The premium phase continues to be rising, world wide it’s nonetheless going. However whenever you add it to the quantity [segments], everyone goes ‘woe is me, the BEV market is dropping’ – no it’s not, actually.

“Secondly, if issues change [for us] change by 2026 will probably be product pushed… and I’m assured even in the present day that the overall market – in case you take out utes in Australia it’s about 18 per cent [BEV], that’s a good chunk of 1,000,000 automobiles per 12 months already.

“The consultants in Australia say by 2026 it’s 160,000 automobiles, and even they’re saying that’s conservative. In order that’s 160,000 BEVs, and we solely need 10 per cent of that… I believe it’s truthful to say that’s effectively and actually achievable [for us].

“So that you’ve acquired to measure the quantity that you really want versus the market you’re making an attempt to get, and I’m not nervous concerning the battery electrical market, I’m actually not in the mean time. It’s a good market to go for,” Mr Connor added.

In 2023, Volvo Automotive Australia had its best-ever calendar 12 months of gross sales in Australia, returning 11,128 registrations – coming off the again of the model setting successive gross sales information for the final six out of seven years.

Of these 11,000-plus new autos delivered to Australian clients, 3949 automobiles had been Volvo Pure Electrical fashions, or roughly 35 per cent of the model’s complete quantity in 2023.

Mr Connor issued a press release by way of media launch earlier this 12 months that he expects Volvo Australia’s yearly quantity to be “almost 80 per cent” electrical by 2025, pushed by the introduction of the brand new EX30 which is predicted to account for round a 3rd of Volvo’s yearly quantity regionally.

3900 EX30s are forecast for the 2024 calendar 12 months, successfully doubling final 12 months’s EV quantity for the model.

Volvo will launch its new EX90 flagship SUV both late this 12 months or early subsequent, bolstered by an as-yet unnamed new electrical mannequin someday in 2025. The EX30 Cross Nation has been confirmed for our market in some unspecified time in the future, too.

Mr Connor hasn’t stated no to extra plug-in hybrids forward of the 2026 deadline, supplied they’re primarily based on current fashions or facelifts – and left the door open to those autos persevering with Down Beneath if the market calls for them.

Nonetheless, because it stands all new mannequin launches (to not be confused with facelifts) will probably be all-electric. At present, the XC60 and XC90 SUVs supply ongoing PHEV fashions, with the S60 sedan just lately regaining a PHEV choice within the type of the limited-run Black Version.

Volvo sells a spread of plug-in hybrid variations primarily based on the XC40, V60, S90 and V90 globally, however these have both been dominated out or culled from the native market lately. The model additionally killed its diesel vary in Australia in 2019.

Alternatively, the EX30, in addition to electrical variations of the C40 and XC40 (quickly to be EC40 and EX40) are all on sale in Australia now, with the EX90 on the way in which. The model sells the EM90 electrical MPV abroad, and it’s understood electrical replacements for its different fashions will probably be launched within the coming years.