Volvo isn’t going to cut the prices of its electric vehicles and will not follow the lead of Tesla.
While recently speaking after the Swedish automaker announced its fourth-quarter financial results, chief executive Jim Rowan noted that strong demand for its EVs means that there is no need to cut prices. Indeed, the company already has a strong backlog of orders.
“We don’t see (price cuts) at this point in time,” Rowan confirmed to 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.”
Sales of fully-electric vehicles accounted for 18 percent of Volvo’s total sales in 2022, a considerable increase from the 6 percent in the year prior.
Read: GM Won’t Follow Tesla’s EV Price Cuts, Neither Will BMW, Mercedes, Or Hyundai
In January, Tesla slashed the prices of some Model 3 and Model Y vehicles by as much as 30 percent not just in the United States but also across Europe and China. Ford quickly responded by cutting prices by an average of $4,500. Various car manufacturers in China also reduced the prices of their electric vehicles. But despite this, many legacy carmakers are holding firm on their current pricing strategies.
Indeed, General Motors chief executive Mary Barra recently said that the company is confident in its current prices, noting that it continues to see strong demand for its electric vehicles. Similarly, representatives from BMW, Mercedes-Benz, and Hyundai also confirmed that no price cuts are on the horizon. VW also isn’t planning any cuts.
