Volvo Car AB is making a bold move in its quest to expand its presence in the Chinese market. The automotive company is placing its bets on a luxurious battery-powered minivan, the EM90, as it looks to gain a stronger foothold in China. With a price tag starting at 818,000 yuan ($112,211), the EM90 is set to become the most expensive model in Volvo's lineup. The six-seater minivan, touted as a Scandinavian "living room on the move," offers an impressive range of approximately 738 kilometers (459 miles).
Volvo's strategic move is aimed at targeting the multi-purpose vehicle (MPV) segment, which has gained immense popularity, particularly in China. The Swedish-based car manufacturer, owned by Chinese billionaire Li Shufu's Geely empire, seeks to capitalize on this growing trend while European electric vehicle (EV) rivals struggle to keep up with domestic competitors in China.
According to statistics from the China Passenger Car Association, local brand BYD currently holds a 36% share of EV sales, followed by Tesla at 8.4%. Tesla, in a bid to stimulate sales growth, initiated a price war in China last year by reducing the prices of its EVs. This move prompted other players in the market to follow suit. However, Volvo's premium positioning and advancements in battery technology have helped shield the company from the pressures of the price war.
While Volvo faces intensified pressure to fulfill its timeline for becoming an EV-only carmaker, the company's CEO, Jim Rowan, remains confident in their progress. Volvo aims to sell 1.2 million vehicles annually by mid-decade, a significant jump from last year's sales figures, and plans to discontinue the production of combustion-engine cars by 2030. Although software issues have slightly hampered their timeline, the company plans to begin delivering its fully electric SUV lineup, including the EX90 and EX30, starting next year.
The EM90 minivan will be manufactured at Geely's plant in Hangzhou Bay, with production commencing at the beginning of next year. Chinese customers can already place pre-orders for this extravagant minivan. Equipped with bi-directional charging capabilities, a range of multi-functional screens, and a host of other features, the EM90 aims to cater to both business and private needs.
By pushing boundaries with its premium EV offerings, Volvo Car AB is making a statement in the Chinese market. With the EM90 minivan, the company hopes to entice affluent Chinese consumers seeking the perfect combination of luxury, practicality, and sustainability.