Volvo is not going to cut the prices of its electric cars, following Tesla’s example. This is what Jim Rowan, the chairman of Volvo’s board, said in a conversation with the news agency Reuters. He emphasizes that demand for Volvo’s electric cars remains consistently high and Volvo has a long backlog of orders to fulfill. Oliver Blume, the head of the Volkswagen Group, expressed himself similarly.
“At the moment, we do not see a reduction in prices. Demand for our electric machines is at an all-time high, and the backlog is at an all-time high,” says Rowan.
As you know, Tesla reduced the prices of its models in January, with cars becoming even 20% cheaper in some regions. Some observers predicted that this move by Tesla could lead to a price war for electric cars, but so far, at least, it has clearly not come true, despite the fact that some manufacturers have reduced prices and are offering various benefits to buyers of their electric cars.
In the case of Volvo, electric cars accounted for 20 percent of the total number of cars sold last year, but in general Volvo sold 13% fewer cars than a year earlier, so the car manufacturer cannot call 2022 a successful year. Volvo predicts a “challenging year” this year as well.
