Volvo is working on an all-electric car scheduled for launch in 2019.
When it hits dealership stores, the pricing of the model is expected to be the same as the Tesla Model 3 and Chevrolet Bolt EV.
The Tesla car costs $35,000 in the United States which has already started taking pre-orders, while Chevrolet Bolt EV will be below $40,000 when it gets launched. The pricing will be in this range for most affordable electric cars set for launch in 2019. Volvo bets on the pricing trend so that they could go with a similar cost for their own car. All models are expected to cover at least 250 miles on full charge and Volvo should be well aware of this customer expectation.
While most companies are going to go with the industry norms, some like Honda believe electric cars can still function good with minimal mile range. It is a debate for another day! Volvo is planning to offer an entry level model priced at $40,000. The brand’s S60 sedan which doesn’t have an electric motor is priced at $34,945 while the upcoming range of 40 series cars will be priced lower starting at $30,000 going all the way up to the premium $40,000 mark.
By going with such a high price tag, Volvo will compete with all top brands in the market. They will not only go against Tesla and Chevrolet but against other premium brands like BMW, Audi and Volkswagen. The upcoming all-electric Volvo car is expected to use the Compact Modular Architecture (CMA) which is versatile enough to accommodate electric motors as well as the required battery size.
The automobile brand has already showcased 40.1 Crossover and 40.2 Sedan electric concept vehicles last year. Based on their announcements, the company is planning to launch a bunch of 40 series models now and the future EVs will be based on these compact cars when they get launched in 2019. Instead of jumping head first into only electric cars, Volvo will also launch many hybrid models in the same year to enable customers to slowly transition into EV territory.
At present, Volvo has the T8 version of XC90 and another S90 hybrid variant coming up. Instead of trying to compete with luxury brands like Jaguar which has planned to price its I-Pace electric car at $60,000 on par with Tesla Model X SUV, Volvo is aiming to be more affordable to reach more buyers.