Volvo CEO Says EVs Will Cost The Same As Petrol Cars By 2025

Volvo’s CEO Jim Rowan believes that electric cars will cost the same amount as petrol cars by 2025. He believes as the prices of batteries come down and as COVID-19 starts to go away and things from the supply chain side stabilise with the chip shortage also normalising — the demand for electric cars is only upwards. While this is happening, the price of fuel is going up and generally, prices for cars are going up.

Rowan believes that Volvo is all in on EVs and he added that car companies shouldn’t be relying on government subsidies for success as they have to find ways to make affordable electric cars, not just luxurious ones.

"We think we get [to price parity] ... around 2025, where there'll be enough technology that's driving down cost on the battery. Technology will drive the range up. Fewer batteries, but more range, at less cost — we'll get there,” Rowan added.

Rowan added that fewer batteries should be used as advancements have made them adequate to provide a range that is acceptable to most people. This comes as Volvo revealed the EX90 which is a three-row seven-seater mid-size sedan. It also showcased the smaller electric crossover at the same event.

Rowan added that the city car style crossover will be revealed by Volvo in 2023 which could be basically a crossover variant of the EX90.