A glimpse of Volvo’s future electric car was shown during the unveiling event of the new EX90 SUV last month, and everybody pretty much assumed it was going to be called “EX30”, comparing its small size to the EX90.
Well, now it’s official. Volvo’s CEO, Jim Rowan, confirmed this will be the name of the brand’s smallest electric crossover, in an interview with Automotive News Europe. He went on to say that the EX30 will be built in China and that it will be sold online on a subscription basis with a three-month minimum commitment.
Gallery: Volvo EX90
In other words, you won’t own the car, but rather pay a monthly fee for it, which should help keep costs down for new owners. Additionally, Rowan is betting on Gen Z-ers to make up the bulk of sales for its new baby EV. People who are “18, 19 years old and coming into the car market for the first time and looking for the right price point plus the flexibility, the insurance and roadside assistance that Care by Volvo offers,” the company’s CEO said.
Another thing he mentioned in the interview is that the Geely-owned Swedish company won’t offer battery rental or swapping anytime soon, quoting safety concerns.
After selling nearly 700,000 cars worldwide in 2021, Volvo aims to sell 1.2 million vehicles by 2025, with half of those models being fully electric, and half of all transactions to be made online.
One key player in this strategy is exactly the future EX30, which will be revealed in 2023. The baby electric crossover will be cheaper and smaller than Volvo’s current XC40 Recharge EV, which measures 4,425 millimeters (174.2 inches) in length, and has a starting price of $53,550 MSRP in the United States.
Expected to be based on the Sustainable Experience Architecture (SEA) developed by Volvo’s parent company Geely, the entry-level crossover was previously described by Jim Rowan as being a “city car aimed at a younger demographic who can subscribe to it and make it their first Volvo.”
What’s your take on Volvo’s strategy - do you think it will succeed in making money by selling subscriptions for new cars? Let us know in the comments.