Volvo not keen to follow Tesla, won't reduce EV pricing. Details here

Volvo is not keen to follow the trend of price reduction of electric cars, which has been set by Tesla. Tesla CEO Jim Rowan has said that the Swedish luxury car brand has no plan to reduce the pricing of its electric cars at this point, claims a report by Reuters. The automaker's stand comes at t time when Tesla has slashed prices of its EVs by up to 20 per cent, starting what some have dubbed an all-out EV price war.

However, Volvo has cleared that it is not interested in participating in the price war. The carmaker has cited strong demand and a solid backlog of orders for its EVs. “We don’t see (price cuts) at this point in time. Demand for our (battery electric vehicles) is the highest we’ve ever seen, the backlog for that as well," said Volvo CEO Jim Rowan.

Several automakers, including Ford and some EV startups, have followed the trend and competitively reduced their respective EVs' pricing to match with Tesla. Ford has cut the price of its all-electric Mustang Mach-E by up to $5,900, while Lucid has started offering massive discounts. VinFast too planning promotions for its yet-to-be-delivered made-in-Vietnam EVs.

However, there is a different picture as well. Volvo is not the only car brand that declared it would resist cutting prices for its electric vehicles. Volkswagen Group’s CEO Oliver Blume, too, said that the German auto major has no plans to reduce the prices of EVs. He said that VW is focusing on reliability. He took a jab at Tesla EVs' lack of reliability. Renault, on the other hand, has echoed the same sentiment when it comes to reducing EV prices. VW-owned Porsche has in fact hinted at increasing EV prices.

Speaking about Volvo's sales performance, the automaker has registered three times growth in global plug-in vehicle sales in 2022, while the pure electric models accounted for 20 per cent of the total sales volume. This has been a record for the Geely-backed European car manufacturer.