Volvo CEO Jim Rowan gave his opinion at a recent event in Stockholm, Sweden. According to Rowan, EV prices are going to reach price parity with their gas-powered cousins by 2025. There are variables at stake here, however, future EVs will reach there.
Volvo has been all in about the EV future and is willing to say that electric cars and SUVs will cost about the same as today’s ICE equivalents in just two to three years. He further stated that the companies should not rely on government subsidies for success. It is well known that manufacturers will have to find ways to build cheaper EVs, however, considering the push from the EU to bring climate change. And that transportation is one of the biggest contributors to climate change, it became crucial that EVs are promoted and the industry changes. There are multiple variables that need to be considered here. If the situations still continue in the midst of a global financial disaster and gas prices remain super high, Rowan’s optimistic estimate could change. Regardless, the CEO of a luxury car company that’s “all in” about an EV future is willing to say electric cars and SUVs will cost about the same as today’s ICE equivalents in just two to three years.
Technology advancement
According to Automotive News Europe, the CEO shared at a recent event in Stockholm, Sweden. “We think we get [to price parity] … around 2025, where there’ll be enough technology that’s driving down cost on the battery. Technology will drive the range up. Fewer batteries, but more range, at less cost, we’ll get there.“
In Rowan’s perspective, rather than battery prices, he is talking about fewer batteries requirement for vehicles. Which means there should be an advancement in technology. Since batteries are the most expensive part of an EV, this makes plenty of sense, though it doesn’t account for automakers and dealers pricing electric cars higher than they should.
Volvo just officially revealed its EX90 three-row seven-seat midsize electric SUV, which will serve as a replacement for the current XC90. During the reveal, it also teased a smaller electric crossover. Volvo currently offers both the XC40 Recharge and C40 Recharge electric crossovers, and almost all of its models are available in various plug-in hybrid electric vehicle (PHEV) configurations. Rowan also referenced a “city car” style crossover that Volvo will reveal in 2023. Smaller EVs should also help Volvo sell in higher volume and reduce prices. Chances are, the crossover Rowan was referring to is the one Volvo teased with the EX90 at the recent reveal event.
