Volvo Cars, which opens a new tab in Davos on Wednesday, defies more pessimistic predictions from competitors by maintaining confidence in “tremendous growth” in the electric vehicle sector, CEO Jim Rowan told the Reuters Global Markets Forum.

The automaker stated that demand for its luxury brand was growing faster than that of competitors in the mass market. By the middle of the decade, the company wants electric vehicles (EVs) to account for half of its sales volume, and by 2030, it wants to sell entirely EVs.

“We have much more pricing power and people have got more disposable income so they can afford it if they want to drive an EV,” Rowan said.

Unlike others, the CEO of Volvo Cars stated that he projected solid growth in the global market for electric vehicles, with demand being especially high in Europe.

Numerous automakers have issued warnings over the past year stating that low demand, steep price reductions, reduced subsidies, and problems with the supply chain are to blame for the delayed emergence of the expected growth of EVs.

Given its status as a luxury brand and the strong margins it saw on its electric vehicles, Volvo has previously stated that it had no intention of getting involved in the pricing war that Tesla started.

Customers would not be impacted by higher prices resulting from Red Sea shipping disruptions, the CEO said, adding that Volvo would cover any additional expenses.

Last week, Volvo announced that a delayed delivery of gearboxes was the reason for a three-day work stoppage at its Belgian factory.

In addition, the CEO told Reuters that he has big plans for India over the next five years, including the introduction of the more reasonably priced EX30 there in 2025.

(Adapted from thePrint.in)

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