Volvo Cars started the year on a high note as electric vehicle sales expanded 157% in the first three months of 2023, accounting for nearly one in every five cars sold. After an overwhelmingly positive response, Volvo says it was forced to close orders for its new flagship EX90 SUV due to the model year selling out.
As one of the fastest-transforming automakers going electric, Volvo is leading the way toward a sustainable future.
Volvo’s commitment to a cleaner future is paying off. In the first three months of the year, the automaker sold over 30,000 battery electric vehicles (BEVs), representing 18% of its total car sales. In comparison, Volvo’s EV sales accounted for only 8% in the first quarter of 2022.
Electric vehicle sales grew by 157% in Q1 on the heels of two models – the XC40 and the C40 Recharge. XC40 BEV sales surpassed 21,100, compared to 8,100 last year, while C40 sales reached 9,000, up from 3,600 in Q1 2022.
Despite economic headwinds, Volvo remains confident in becoming an all-electric automaker by 2030. The automaker plans to release at least one new EV each year until mid-decade, starting with the EX90.
Volvo closes EX90 SUV orders after selling out
After officially releasing its flagship SUV last November, deemed “the safest vehicle it has ever produced,” Volvo says it had to close EX90 orders due to the model selling out.
Jim Rowan, CEO of Volvo Cars, explained in the company’s first-quarter earnings release why its closing EX90 orders:
I feel proud that the customer response to that car has surpassed our boldest and most ambitious ambitious internal projections. As a result, we have now had to close the order book for the time being because the model year is sold out.
He added that Volvo will open orders for the EX90 again soon. Meanwhile, Volvo is preparing for a big year with another new launch, a new fully electric small SUV, which it will introduce in a few months.
Rowan recently said the new smaller SUV would be aimed at attracting younger buyers with an entry-level price point, bold exterior design, and digital experience.
Volvo’s upcoming smaller SUV will reportedly ride on Geely’s premium SEA architecture, the same used for the upcoming Polestar 4.
Volvo is charging ahead, showing how a legacy automaker can transition to a fully electric future. The automaker aims for a 50% fully electric sales share by 2025 as it works towards a full EV lineup by 2030.
The timeline is well ahead of most legacy automakers. For example, Ford and GM are aiming for around a 50% EV share by then while Kia, Honda, Toyota, and others are even lower.
Several automakers, including Kia, Honda, and Toyota, have recently raised their EV production and sales targets to keep up in the rapidly evolving auto market.
Volvo is demonstrating how the transition should be done. Stay tuned for more on the automaker’s smallest and cheapest EV, due out this summer.
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