7:10 am, February 11, 2023
The boss of Volvo says the firm has no intention of following Tesla’s lead and lowering its EV prices.
The Elon Musk-owned outfit saw its used values plummet last month when it slashed the price of its Model 3 and Y.
Some experts predicted that the move could spark an EV price war but one firm that certainly won’t be getting involved is Volvo.
The Swedish firm’s CEO, Jim Rowan said there was ‘no need’ to cut prices as the company retains a solid order backlog for its full EVs.
Amidst suggestions that Tesla’s decision was fuelled by concerns over demand, Rowan said he had seen no let up from Volvo customers.
Recent accounts showed that the popularity of Volvo’s EV tripled in Q4, meaning fully electric vehicles accounted for 18 per cent of all sales.
That figure represented a huge leap from the six per cent seen in the same period 12 months’ earlier.
‘We don’t see price cuts at this point in time,’ Rowan told Reuters. ‘Demand for our battery electric vehicles is the highest that we’ve ever seen, the backlog for that as well.
‘We don’t have any intention to reduce pricing.’
(Jim Rowan, CEO of Volvo Cars)
Joining Volvo in its tough stance are the likes of Volkswagen, Hyunda and Kia, which have all rejected calls to slash prices.
US firm Fisker is also said to be standing firm with bosses believing their cars are already ‘competitively’ priced
Reacting to Tesla’s decision to cut prices last month, What Car? editorial director Jim Holder told Car Dealer: ‘The price increases of recent years and months have been possible as everyone was doing the same thing – but Tesla’s move bursts that bubble.
‘Its price drop is so significant it makes almost every other rival look expensive and leaves them with no option but to respond if they want to remain relevant in an increasingly competitive market.’
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