STOCKHOLM -- A key to helping Volvo Cars' EVs achieve price parity with comparable combustion-powered models will be an affordable small SUV the automaker plans to reveal in 2023.
Volvo showed a teaser image of the vehicle at the end of its introduction of the new EX90 flagship electric large SUV here Wednesday.
The EV will be a "city car aimed at a younger demographic who can subscribe to it and make it their first Volvo," CEO Jim Rowan told Automotive News Europe.
"If we can get them in as first-time Volvo owners then we can try to maintain them as customers" as they marry and start families and require bigger vehicles, such as the EX90, Rowan said. But the flagship SUV is not an option for first-time car owners with starting prices in the 100,000-euro range.
In Europe, Volvo sibling brand Lynk & CO sells its 01 plug-in hybrid, which is a derivative of the Volvo XC40, via a subscription plan that costs 550 euros a month in Germany.