Volvo Cars Yuan Xiaolin interprets EM90: the opener of a new chapter in the high-end MPV market

"Luxury is not just about price or configuration, it is more about an attitude and value pursuit, and there are three levels of criteria that need to be met. At the 2023 Guangzhou Auto Show, Yuan Xiaolin of Volvo Cars shared his unique insights on luxury brands in the era of new energy vehicles and revealed Volvo's strategic plan in an interview with a reporter from Securities Daily.

In Yuan Xiaolin's view, with the changes in the Chinese market and users, consumers have a more diversified understanding and definition of luxury brands, but in the final analysis, it is still necessary to provide better products, build stronger brands, and adapt to development needs through system support. Volvo is able to occupy a place in the Chinese market as an individual, and the strategy is to balance the relationship between products, brands and systems, that is, to maintain the sustainability of the business.

It is worth mentioning that in order to grasp the rapid development trend of the domestic MPV (multi-purpose vehicle) market, Volvo launched its first pure electric luxury MPV in the domestic market - Volvo EM90. The new car was first launched in China on November 12 and was officially unveiled at the 2023 Guangzhou Auto Show.

"There is no shortage of MPVs on the market now, but if you classify them according to luxury and non-luxury, or by price, there are very few MPV models in the million-dollar level. At this point, the EM90 is unique. Yu Kexin, vice president of Volvo Cars Greater China Sales Company, said that 2024 is the first year of Volvo's transformation, and EM90 has the important significance of opening a new era.

Volvo's luxury concept in the era of new energy vehicles

In the era of fuel vehicles, the number of cylinders and horsepower basically represent pricing power and luxury. However, with the in-depth reconstruction of the automobile industry by intelligence and electrification, as well as the accelerated penetration of new energy vehicles, the pricing strategy and premium ability of luxury brands that have been tried and tested in the traditional track have been hit by unprecedented impact on the new track.

"I've always believed that there are three levels of luxury cars that meet the requirements. Yuan Xiaolin said, first, it must be a qualified car that meets the requirements of the times; second, it must have high-quality quality, to achieve that no one I have, people have my superiority; third, it must have its own soul, luxury should never be simply equated with price or configuration, luxury represents an attitude and value pursuit.

Yuan Xiaolin told the "Securities Daily" reporter that for the future of travel, Volvo Cars continues to achieve technological breakthroughs in the fields of electrification, intelligence, and autonomous driving, while always adhering to the concept of safety, health, sustainability and personalization, and constantly pursuing the ultimate in these aspects. "This is Volvo Cars' interpretation and attitude towards luxury. These essential things, no matter how the trend changes, will not only last for a long time, but also will be recognized and loved by more and more users. Yuan Xiaolin said.

The reporter observed that at the moment when a number of new energy vehicle brands are rising strongly and competition is becoming increasingly fierce, price exploration has become an important way for car companies to increase sales and seize more market share, but Yuan Xiaolin believes that this behavior is unsustainable. "If an industry is to develop healthily and a company can operate sustainably, it must have a positive relationship. "The so-called positive relationship is reflected in Volvo, which is the good management of the existing fuel vehicle market and the transformation and development of the incremental new energy vehicle market. Volvo Cars' global sales reached 59,900 units in October, up 10 percent from the same period last year, and in the first 10 months of this year, the company sold 569,000 new vehicles worldwide, up 18 percent year-on-year.

New energy vehicles have become the main driver of Volvo Cars' sales growth. In October, global sales of Volvo Cars' Recharge series models increased by 7% year-on-year, accounting for 36% of Volvo Cars' global sales. Among them, the sales of pure electric vehicles achieved a year-on-year increase of 29%, and the proportion of total sales also increased from 12% in the same period last year to 18%.

In this regard, Yu Kexin said that the launch of Volvo EM90 is an important signal released by Volvo Cars to deepen the transformation process of the company's comprehensive electrification. In 2024, Volvo will also start the sales of a number of electric vehicles, and will pursue the continuous growth of electric vehicle sales while pursuing the market share of fuel vehicles.

The EM90's entry into the premium MPV market comes at the right time

At present, new energy has been fully implemented in the SUV and sedan markets, and has quietly swept the MPV market. Traditional car companies and new power car companies have entered the new energy MPV market.

According to the data of the Passenger Car Association, in the first half of this year, the retail sales of MPVs reached 524,000 units, a year-on-year increase of 21.6%, which was higher than the growth rate of overall retail sales of passenger cars. It is worth mentioning that the sales volume of medium and large MPV models priced at more than 250,000 yuan reached 330,000 units, a year-on-year increase of 60%, which is the price segment of high-end new energy MPV models.

Volvo Cars' President and CEO Luo Wenxiang said that Volvo chose to launch the Volvo EM90 for the first time in the Chinese market, mainly because the Chinese market is very large, especially in the high-end MPV segment.

Some analysts believe that the environmental awareness and pursuit of quality of family consumers will promote the development of the mid-to-high-end new energy MPV market, and the government's subsidy policy and purchase restriction measures for new energy vehicles have also brought more opportunities to the new energy MPV market. In the next step, intelligence, versatility and safety will become key factors in the competition in the MPV market.

In Volvo Yuan Xiaolin's view, Volvo EM90 is now the right time to enter the MPV market, and Volvo has an advantage in entering this market, the biggest advantage is safety and intelligence. "In the future, the EM90 will also be sold in other markets, provided that there is demand in overseas markets first. Yuan Xiaolin said that the Chinese market may not be the first to be needed, but Volvo EM90 is the most suitable for the Chinese market, so it is also the first to be launched.

Volvo Yu Kexin expressed the same view, pointing out that the EM90, as a benchmark model, is exactly what the market needs at the moment. "Our market positioning is very clear, that is, we are focused on the pure electric MPV market of millions of yuan and above, and we are committed to deep cultivation in this field. ”

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