Volvo’s switch toward electric vehicles to will start in China
We expected the playing field in electric vehicles to become more competitive as a growing number of manufacturers looked to challenge Tesla (TSLA). Given the Rising Middle-Class and level of pollution in China — according to the Chinese Ministry of Health, industrial pollution has made cancer China’s leading cause of death — we are not surprised that Volvo would begin this transition away from combustion engines. The implications to watch will be the price points at which Volvo brings these all-electric models to market in China.
Volvo Cars will build its first electric vehicles in China as it moves to develop an entirely electrified lineup, and the automaker also is unveiling a subscription service as an alternative to car buying, CEO Hakan Samuelsson told The Nikkei in a recent interview.
The Sweden-based automaker surprised the world in July by announcing that all new-model releases starting in 2019 would be electrified.
Volvo plans to roll out five electric cars by 2021, with the first debuting in 2019 under the new premium electric vehicle brand Polestar. Volvo will build this in China with parent Geely Automobile Holdings, hoping to take advantage of economies of scale.
Source: Volvo’s switch toward electric will start in China, CEO says- Nikkei Asian Review
