Volvo has said it is on course to achieve cost parity between electric vehicles and internal combustion engine vehicles by 2025, according to a report by Australia’s CarExpert.
The Swedish carmaker previously announced its commitment to becoming a fully electric car company by 2030 and has already stopped offering pure ICE powertrains in its line-up. In July 2021, Volvo offloaded its ICE development to Aurobay – a joint venture with Geely – allowing it to fully focus on electric powertrains.
This is said to give Volvo an advantage to hit its cost parity target compared to some brands that persist with ICE development. “I think it’s really important that you get cost parity between BEV (battery electric vehicle) and ICE,” said Volvo chief commercial officer and deputy CEO Bjorn Annwall.
“Our whole technical roadmap is geared to achieve exactly that, that by mid-decade, the cost for BEV should be same as ICE. And that’s the reason we need to work on optimising the full flow in a different way to get that out,” he added.
“That said, it’s probably easier to achieve for a premium car manufacturer than a mass manufacturer. That’s why it can happen much quicker for Volvo who’s also, as I said, we’re a relatively small brand, so of course, we can drive this quicker than a kind of cheap mass brand with different brand positioning. But I firmly believe we’ll get there,” Annwall explained.
One obstacle that Volvo will face on its journey to achieve cost parity is the cost of raw materials, particularly in the construction of battery packs. This is an issue that will affect other EV makers, including mass-market brands that still need to develop ICEs as well as electrification technologies to cater to various segments.
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like it or not, its unavoidable. ICE engines are dinosaurs. It’s now the dawn of the electric era. You can hold on for dear life to ICE, but everyone knows its life is now limited. Companies that do not follow the trend, will die off into obscurity like FujiFim (they were too slow to follow digital photography transition)
LOL I think you meant to say Kodak is it – (as they were the first to invent the digital camera but didn’t bother to release it for their own Film sales) – Fuji definitely restructured and position themselves very well in comparison.
EV’s? No thanks. Takes too long to charge. You Can buy one and brag. Until they solve the long charging time, there is still demand for ICE.
Only way for ICE to disappear is by gomen banning its sales or prohibit it from urban areas like in europe or tax petrol and diesel to ridiculous amount. These are what we call destruction of the free market and forcing consumers to comply, like how locals are forced to buy proton and perodua.
Volvo what is there left on your ICE engines? From the Aurobay website there is just 3 engines the 1.5L (shared with X50), 2.0L and another Diesel engine that’s about it?
For the Malaysian context it is even better with the less choice of 1.8L engine more likely that the 1.5L engine will be the sole engine choice coming forward with hybrid technology for the foreseeable next 5 years.
more car makers should transition their focus onto electrification. only with collective focus can the industry streamline their R&D efforts and bring consumers better products
ICE vehicles will not be obsolete and will definately are here to stay for more than expected.
All these news and justifications are just marketing gimmics to sell more electric vehicles.
The price of these electric vehicles and the supporting infrastructure is not feasible enough to replace ICE vehicles.
Do not forget that Malaysia’s electricity is still mainly provided from coal burning which is not as enviromentally friendly as it seems.
Also the cost of electricity will be higher the more you use them.
Electric vehicles are just a lifestyle toy for the rich and car enthusiast.
Lower maintenance/running cost and enviromentally friendly are just excuses for the sale / purchase.
This is Malaysia, to scrap vehicles older than 10 years also not implementable.
What more you want to say electrification of vehicles.
Stop dreaming.
“For the rich and tech* enthusiasts”
ftfy.
Volvo can stop developing, but find other source.
Just like a Contractor cari subcon supply.
E.g transmission, battery sourcing from others.
Motor and engine also can too.
At least here for Malaysia ICE will be here to stay. Even if our national car makers launch EVs under 100k its still not enough as there isn’t enough charging locations and the majority of the consumers are aiming for a 50k EV vehicle instead of a 80-90k EV
You all know that it is more polluting to build and EV and it takes quite a lot of driving before it break even environmentally.
That said, vehicles that doesn’t get a lot of mileage (toys, collectibles) shouldn’t be EV in the first place.