Volvo really wants a hit product.

Title: Volvo Launches New Pure Electric SUV EX30

Author: Zhou Zhiyu

Editor: Zhang Xiaoling

Volvo's CEO, Luo Wenjin, who just finished his visit to China, has launched a new heavyweight car in Europe.

On the evening of June 7th, with a creative video, Luo Wenjin introduced the new pure electric SUV EX30 to the world.

This is the smallest SUV in Volvo's history. Compared with the compact SUV XC40, the overall size of the EX30 is smaller. In terms of appearance, it is similar to the flagship model EX90, which was recently launched by Volvo.

The launch of the EX30 means that Volvo is trying to make a breakthrough in a new subdivision market. As the consumer group of electric vehicles expands, Volvo wants to get a share of the entry-level luxury market, and even make the EX30 a "hot-selling model" to help Volvo achieve its goal of electrification transformation.

Luo Wenjin said that the EX30 is of great significance to Volvo. While enriching Volvo's pure electric product lineup, it helps Volvo to establish a foothold in the rapidly growing pure electric vehicle market and seize the market opportunities of the increasing demand for pure electric vehicles.

With its smaller size and based on the GEELY AUTO SEA platform, the EX30 is aimed at urban young people, pioneers of travel, and trendy car buyers. It targets consumers who are more sensitive to the cost of buying a car but still want to buy a luxury brand car.

Luo Wenjin said that when consumers consider choosing between electric vehicles and fuel vehicles, price and ownership cost are actually the biggest challenges. "The small but powerful EX30 provides consumers with everything they want from Volvo."

While continuing the "safety" label, the EX30 has both active safety systems and passive safety systems. It also has the characteristics of the fastest 0-100 km/h acceleration in 3.6 seconds and 80% charge in 25 minutes. It also provides two types of batteries, lithium iron phosphate and ternary lithium, and three powertrain solutions for different groups of people.

The most noticeable feature of the EX30 is its price. In terms of the starting price, the EX30 has only announced the price in some regions. Its starting price in the United States is $34,950 (about RMB 2.492 million), and in the United Kingdom, it is £33,795 (about RMB 3.004 million).

Unlike the Chinese market, the sales prices of electric vehicles in the European market are generally higher. Compared with the starting prices of other competing models in the UK, such as Tesla Model 3 (£42,000, about RMB 3.733 million) and Smart #1 (£35,595, about RMB 3.164 million), the price of the EX30 is very competitive. It is even lower than the starting price of the XC40 fuel model.

This also indicates that the "oil-electricity same price" strategy of car companies has gradually moved from the mid-to-high-end market to the luxury car market. The trend of electric vehicles replacing fuel vehicles is irreversible. As these car companies continue to launch new models, the penetration rate of new energy vehicles in various subdivision markets will accelerate. Luo Wenjin predicts that with the completion of the supply chain and the continuous decrease in raw material costs, as well as the landing of more cost-reducing technologies, the turning point of "oil and electricity at the same price" will come around 2025.

What Volvo is doing is to quickly expand its product lineup and strengthen its supply chain and sales advantages before the turning point arrives.

Wall Street News also understands that the EX30 also plans to enter the Chinese market in 2024. However, facing the fiercely competitive Chinese market today, the pricing strategy of EX30 in China still needs further consideration.

As Luo Wenjin said, the EX30 is very important for Volvo. It will be the key model to help Volvo achieve its electrification transformation.

According to Volvo's plan, it will sell 1.2 million cars globally in 2025, of which 50% will be pure electric models, and become a pure electric luxury brand by 2030.

To achieve this goal, a popular model that can sell in large quantities is essential. Last year, Volvo's global car sales were about 615,100 units, and it needs to target more diverse consumers and tap the consumption potential of segmented markets. Volvo also needs a key model like the EX30 to make it a "popular model" and accelerate the pace of overall electrification transformation and achieve a surge in sales.

Overall, Volvo's momentum is good. In the first five months of this year, Volvo's global sales were about 275,300 units, a year-on-year increase of 14%. The sales of pure electric models increased by 196% year-on-year, which is the key to the overall sales increase of Volvo. In addition, its pure electric vehicle sales ratio has also reached 18%, and this ratio will further increase with the launch of a series of pure electric models.

How to break through in China, the forefront of global new energy, is the problem that Volvo needs to solve now. In China, Volvo's cumulative sales in the first five months were about 62,900 units, a year-on-year increase of 17.4%, but the specific sales of pure electric models were not disclosed; in addition, the delivery of EX30 and EX90 in China is still pending, and the launch of EX90 has been delayed due to software issues, and Volvo is also facing transformation pains.

As Volvo's Chief Business Officer and Deputy CEO Amber Yang said earlier, maintaining a leading position in China's pure electric vehicle market is crucial for Volvo.

As the world's first luxury car manufacturer to fully adopt electrification technology, Volvo has great ambitions and has been taking action recently. However, facing an increasingly fierce market reshuffle, it also needs to show some real skills. Creating a popular model is its opportunity to advance.