Volvo has no plans to challenge low-cost EVs in China as the ongoing price war intensifies. The EX30, Volvo’s cheapest EV, starts at around $28,000 (200,800 yuan), but that’s as low as the company will go.
Although Volvo was one of the first automakers to commit to an all-electric future, it recently backed off its pledge.
Volvo adjusted its 100% EV sales goal and now expects 90% to 100% of global sales to be electrified by 2030. That includes all-electric vehicles (EVs) and plug-in hybrids (PHEVs).
The up to 10% will be “a limited number of hybrids” if demand calls for it. By the end of next year, Volvo sees 50% to 60% of global sales being electrified.
Although Volvo still believes its future is electric, according to CEO Jim Rowan, markets are moving at different speeds. One of the biggest reasons behind Volvo’s strategy shift is China, the world’s largest EV market. The other is new tariffs on Chinese EVs in the EU and US, where the already popular EX30 is built.
Volvo EX30 (Source: Volvo)
“The China market has changed dramatically in the last two or three years,” Rowan told Automotive News Europe.
Volvo has no plans to rival low-cost EVs in China
According to Rowan, China’s new car market has “diminished” with a big second-hand market, something the country “never really had before.”
Volvo’s CEO said that although middle-class buyers usually chose a Western brand in the past, the rise of Chinese EV makers has been even more detrimental to these brands.
Volvo EX30 Cloud Blue and Vapour Grey (Source: Volvo)
“I don’t compete at the low end of the BEV space in China,” Rowan explained it can be “a tough place to be.”
Volvo expects better results from premium EVs. Last November, the company introduced its first electric luxury van, the EM90, in China.
Volvo’s first electric minivan, the EM90 (source: Volvo)
Volvo’s electric van is a “Scandinavian living room on wheels” with up to 458 miles (738 km) CLTC range. The EX90 starts at $115,000 (818,00 yuan) in China.
Although Volvo just launched its cheapest EV in May, the EX30, starting at around $28,000 (200,800 yuan), that’s as low as the company plans to go, according to Rowan.
Many EVs are selling for much less in China. For example, BYD’s cheapest EV, the Seagull, starts at under $10,000 (69,800 yuan). It was China’s best-selling EV last month, with nearly 41,000 models sold in August alone.
BYD Seagull EV (Source: BYD)
Volvo is fast-tracking EX30 production at its Ghent, Belgium plant to overcome the new tariffs in the US and EU. Volvo is expected to begin building EX30 models at the plant next year for export.
In the US, Volvo’s EX30 will start at $34,950. The smaller electric SUV was already the second best-selling EV in Europe last month, behind Tesla’s Model Y.
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Just like it says on the tin – retailers are advertising killer deals on the fun-to-drive Kia Niro EV, with one midwest auto dealer reporting more than $10,000 off the sticker price of the Niro EV Wind. That’s nearly 25% off the top line price!
The Kia Niro EV gets overshadowed by its objectively excellent EV6 and EV9 stablemates – both of which are currently available with substantial lease cash and 0% APR financing, in fact – but that doesn’t mean it’s not an excellent little electric runabout in its own right.
The last time I had a Niro EV tester, my kids loved it, I liked that it was quicker and more tossable than I expected it to be, and my wife liked the fact that “it doesn’t look electric. It looks normal.” And, with well over 200 miles of real world range (EPA-rated range is 253 miles), it was more than up to the task of commuting around Chicago and making the trip up to the Great Wolf Lodge in Gurnee and back without even needing to look for a charger.
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It’s not the primary family hauler I’d choose – but as a second car? As a primary car for a slightly smaller family (1-2 kids, instead of 3-4)? The Kia Niro EV Wind, with a $42,470 MSRP, seems like a solid, “can’t go wrong” sort of choice. You know?
You won’t even have to pay that much, though. Raymond Kia in Antioch, Illinois is advertising a $42,470 Niro EV for $32,431 (that’s $10,039, or about 24% off the MSRP), and several others are advertising prices in the $33,000 range.
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Many school districts who used EPA funding to help purchase Lion Electric school buses are now stuck with broken down or unsafe vehicles – but Lion’s new Canadian investors seemingly have no plans to make things right.
“All four Lion buses that we own are currently parked and not being used,” Coleen Souza, interim transportation director of Winthrop Public Schools, told Jay Traugott over at Clean Trucking. “Two of them are in need of repairs which would cost us money which we are not willing to invest in because the buses do not run for more than a month before needing more repairs.”
As bad as the revelations of safety and drivability issues and $250 million in unresolved debt have been, it’s the objectively stupid design choices that have been the most shocking.
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“Lion built an auxiliary diesel heater to heat the bus, essentially writing the manual as they went,” explained a school superintendent in the midwest, who asked not to be named. “It was fascinating to watch but there were design flaws with the heater. For example, the intakes pointed downward and we’re driving across rural roads and the intake sucks in that dirt.”
“Using a diesel-powered heater to warm an electric bus also somewhat defeats the purpose of going 100% zero-emissions,” added Traugott.
Despite a new electric school bus rebate and a fresh cash injection from Vincent Chiara, president of Quebec real estate powerhouse Groupe MACH, and Lion director Pierre Wilkie, however, it seems like no help is coming.
It just gets worse and worse
Decommissioned Lion electric buses; via Winthrop Public Schools.
The US school districts who spent tens of millions of taxpayer dollars in the hopes that Lion buses would help decarbonize their fleets and reduce students’ exposure to harmful diesel emissions? Many of them are back to using diesel, while others are trying to get their deposits back so they can buy something else.
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Mitsubishi is partnering with Ample and Yamoto Transports to deploy an innovative new battery swap network for electric cars in its Japanese home market — but it’s not just for electric cars. Mitsubishi Fuso commercial trucks are getting in on the action, too!
Despite a number of early EV adopters with an overdeveloped concept of ownership, battery swap technology has proven to be both extremely effective and extremely positive to the overall EV ownership experience. And when you see how simple it is to add hundreds of miles of driving in just 100 seconds — quicker, in many cases, than pumping a tank of liquid fuel into an ICE-powered car — you might come around, yourself.
That seems to be what Mitsubishi thinks, anyway, and they’re hoping they’ll be your go-to choice when it’s time to electrify your regional and last-mile commercial delivery fleet(s) by launching a multi-year pilot program to deploy more than 150 battery-swappable commercial electric vehicles and 14 modular battery swapping stations across Tokyo, where the company plans to showcase its “five minute charging” tech in full view of hundreds of commercial fleets and, crucially, the executives of the companies that own and manage them.
How battery swap works for electric trucks; via Mitsubishi Fuso.
A truck like the Mitsubishi eCanter typically requires a full night of AC charging to top off its batteries, and at least an hour or two on DC charging in Japan, according to Fuso. This joint pilot by Mitsubishi, Mitsubishi Fuso Trucks, and Ample aims to circumvent this issue of forced downtime with its swappable batteries, supporting vehicle uptime by delivering a full charge within minutes. The move is meant to encourage the transport industry’s EV shift while creating a depository of stored energy that can be deployed to the grid in the event of a natural disaster — something Mitsubishi in Japan has been working on for years.
The pilot is backed by Tokyo Metropolitan Government’s “Technology Development Support Project for Promoting New Energy,” with local delivery operator Yamato Transport testing swappable EVs for delivery operations on both its eCanter light-duty trucks and Mitsubishi Minicab kei-class electric vans.
Electrek’s Take
Fuso eCanter battery swap; via Mitsubishi.
Electrifying the commercial truck fleet is a key part of decarbonizing city truck fleets – not just here in the US, but around the world. I called the eCanter, “a great product for moving stuff around densely packed city streets,” and eliminating the corporate fear of EV charging in the wild just makes it an even better product for that purpose.
Here’s hoping we see more “right size” electric solutions like this one (and more battery swapping tech) in small towns and tight urban environments stateside somewhat sooner than later.
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