Swedish luxury carmaker Volvo is evaluating the possibility of setting up a new electric vehicle (EV) manufacturing plant outside of China, in Asia with India being among the main contenders. Jim Rowan, Global CEO of Volvo Cars, said a final decision on the new EV manufacturing facility’s location is yet to be taken, revealed in an Economic Times report. Rowan added that India and South East Asian countries are being considered.
The company had also revealed that the demand for EVs is expected to jump in 2023 due to the improvements in charging infrastructure and the car’s price falling in line with diesel and petrol engine vehicles.
Rowan also stated that the new plant would not just supply to the domestic market, but will also have to cater to other countries, therefore, the manufacturing facility will also have to weigh in the cost benefits along with the strong logistics network.
"We need to make sure that we can feed other countries other than just India from that location. And then, therefore, we need to look at the logistics of that. And also the cost benefits… But in Asia, that's something that we're looking at the moment," Rowan added.
The CEO further added that the company hopes that internal combustion engine cars and electric vehicles will be at price parity by 2025, making EVs much more affordable for a larger number of customers.
Meanwhile, Volvo is already aiming to shift its entire lineup to fully electric by 2030. The company’s Australia unit has said it plans to sell only EVs in that market by 2026.
The previously unreported product plans amount to the largest revamp of Volvo’s model line-up since Geely acquired the brand from Ford Motor Co in 2010. Volvo has also carved out and sold its gasoline engine and hybrid powertrain operations to Geely.
Among the new battery electric cars being planned for the next four years is a Volvo-branded MPV or van that would be based on a vehicle Geely’s Zeekr brand sells in China.
Called the Zeekr 009, the hulking, battery-electric van, which starts at about 500,000 yuan ($74,179), offers three rows of seating. These EVs will compete against the likes of the Toyota Alphard in Asian markets such as China and Japan as a limousine alternative.
The first of Volvo’s new planned electric models, the EX90 sport-utility crossover, was unveiled late last year. It is expected to hit showrooms in early 2024.
Other battery electric cars in the pipeline include electric versions of Volvo’s mainline products – the XC90, XC60 and XC40 crossover vehicles and the S60 and S90 sedans.
Those mainline cars will follow Volvo’s established, simple design cues, but the new MPV will target buyers in China and other markets with a more emotional design that builds from the Zeekr 009, which features a massive, LED-illuminated grille.
(With inputs from agencies)
