Volvo Has No Plans to Cut EV Prices Like Tesla, Says CEO

Photo: Volvo

Volvo CEO Jim Rowan said that the automaker won’t follow Tesla into cutting vehicle price tags, saying that demand for its vehicles remain high, according to Reuters.

The statement came after Volvo posted lower-than-expected Q4 profits, and Rowan added that the automaker already had a sizable backlog for electric vehicle (EV) orders.

“We don’t see (price cuts) at this point in time,” Rowan said. “Demand for our (battery electric vehicles) is the highest that we’ve ever seen, the backlog for that as well.”

“We don’t have any intention to reduce pricing,” he said.

With the costs involved with manufacturing EVs, it’s not just about being able to cut prices, it’s the fact many automakers just can’t afford to, as they try to make money on vehicles.

The news comes after Tesla cut prices on all its vehicles last month, effectively lodging a price war against the industry, with automakers such as Ford and now Lucid following suit. Others including Volkswagen, Chinese automaker NIO and now Volvo have said they will not cut prices.

Additionally, according to a Financial Times report on Thursday, Hyundai, Kia and General Motors also plan to keep prices as is.

Tesla cut prices by as much as 20 percent, and they’re expected to hit auto startups like Lucid and Rivian, which have yet to become profitable, the hardest.

Henrik Fisker of Fisker Motors has also said that the company has no plans to reduce prices.

“I think we already priced our cars well,” Fisker said, noting that the automaker hadn’t raised prices since 2020 while many others did.