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Volvo will sell 20,000 BEVs annually by 2026



VOLVO Car Australia – which this week announced it will only sell battery electric vehicles (BEVs) locally by 2026 – says it could sell up to 20,000 units a year within three years, accounted for 2% of the domestic market share.

In the Australian premium BEV market, Volvo is now third behind Tesla with the XC40 Recharge and with more production guaranteed for 2023 and beyond, said Volvo Car Australia (VCA) chief executive Stephen Connor said the company will build firmly on that success.

Addressing journalists gathered for the recent launch of the C40 Recharge electric crossover, Mr. Connor outlines VCA’s plan to triple BEV sales in the next three yearssaid current figures show Australian consumers are ready to switch to electric vehicles.

“This year, if you only look at the BEV market, we are third in the BEV market in terms of premium vehicles (automobiles). Tesla is first, we are behind, and Polestar is one or two behind us (position). The only other volume brand that matches those numbers is Hyundai,” he said.

“If we had all the production we’ve asked for this year, we’d deliver close to 1500 XC40s (electric).”

That number puts Volvo in an enviable position. So far, Tesla has sold 14,023 electric vehicles compared to Volvo’s 8,131 – including petrol and hybrid models.

Optimistically, Mr. Connor said the numbers were a positive sign and that the production allocation for 2023 should provide “strong supply” for the all-electric C40 Recharge and XC40 Recharge models – The latter is expected to become VCA’s best-selling vehicle – meaning Volvo can maintain its foothold ahead of Tesla in the country.

“Next year, we have 1550 assigned to our production plan – that’s the C40 Recharge – and our XC40 Recharge production plan is 3450. For mild hybrid and pure electric, we are looking at about 7250,” he said.

“Although we have cut (production) this year, the way it works is the company will try to adjust it in the cycle plan of the year. Those numbers have been pegged to today… We’re totally getting our fair share of production and we’ve worked really hard to make sure that happens.

“We will still grow 30% this year and we are planning to grow another 20% next year. The growth for us will come mainly from pure electricity.”

Mr. Connor said Australian consumers had changed and a change in mindset was integral to VCA’s achievement of its goals.

“Australian consumers are up for the challenge. I mean, Tesla will sell more than 20,000 cars this year. That fact itself is telling you that people aren’t waiting for the government to subsidize – and I don’t think we’re in Australia – they’re not waiting for it.

“I think people want to see the revolution. I think people want to see new cars coming out. And we plan our cycles almost six months in advance, so right now we’re producing the MY24.

“But it comes back to the fact that we are a very good import market for Volvo globally – they are impressed with what we are doing and they are impressed with the consumer demand.

“They are working very hard to prioritize customer orders, because they know we have an order in the bank and the customer is waiting for their car. So naturally they will try and redirect production as much as they can to please our customers.”

When asked how the numbers will increase over the next five years, Mr. Connor said he is confident VCA can sell 20,000 units a year, giving the importer a 2% market share in the market. Australian school.

“I plan by 2026, we will sell 20,000 units – a 2% market share – and run entirely on electricity,” he said.

“Put that in context, and if we get to production, we could sell about 14,500 cars this year. So the growth, when you put it in that context, isn’t huge.

“The important thing is that we will move from our Rechargeable (BEV) market share of about 30% to almost all-electric by 2026. That’s the transition.

“By about 2025, our all-electric market share will be about 78% of our production, so what I’m really doing is turning that last 22% to all-electric by 2026 — and it will really just be product availability that will slow us down.”

Mr. Connor said that based on existing sentiment, he expects consumers to be even more determined to switch to electric vehicles in the coming years, saying most won’t wait until the end of the decade to replace those. their ICE-powered car.

“I’m expecting an acceleration in consumer sentiment, I think it’s going to grow significantly,” he added.

“But I also think the brand has underperformed here over the last few years and we are now moving towards where the brand deserves to be.”

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