Volvo, the Swedish carmaker known for its safety and reliability, is also becoming a leader in the fast-growing premium electric car market. The company has announced a new model program that aims to accelerate the transition to electric vehicles in Denmark, one of its key markets in Europe. In this article, we will explore how Volvo innovates and invests in electric mobility, the benefits and challenges of switching to electric cars, and how Danish consumers respond to Volvo’s electrification strategy.
Volvo’s Ambitious Electrification Goals
Volvo has set a clear and ambitious goal: to become a fully electric car company by 2030. By then, the company will only sell fully electric cars and phase out any car with an internal combustion engine, including hybrids. Volvo’s decision is driven by the increasing demand for its electrified cars and its commitment to reducing its environmental impact and meeting its customers' expectations.
To achieve its 2030 target, Volvo is launching a series of new fully electric models in the coming years, starting with the XC40 Recharge and the Volvo C40 Recharge, two compact SUVs that combine performance, design, and sustainability. The XC40 Recharge, which was introduced in 2019, is Volvo’s first fully electric car and has received positive reviews from critics and customers alike. The Volvo C40 Recharge, which was revealed in 2021, is Volvo’s second fully electric car and the first Volvo model designed as pure electric only.
Both the Volvo XC40 Recharge and the C40 Recharge are part of Volvo’s new model program, which offers a range of benefits and incentives for Danish customers who want to switch to electric cars. These include:
- A free charging package for one year, which gives access to more than 200,000 charging points across Europe, including over 2,500 in Denmark.
- A free service and maintenance package for three years covers all regular service and maintenance costs, software updates, and roadside assistance.
- A competitive price compared to other premium electric SUVs in the market. The XC40 Recharge starts from 449,900 DKK ($67,800), while the C40 Recharge starts from 469,900 DKK ($70,800).
- A flexible subscription option through Care by Volvo, which allows customers to rent a Volvo car for a fixed monthly fee, with no down payment or long-term commitment. Care by Volvo also includes insurance, taxes, service, maintenance, and access to other Volvo models.
The Benefits and Challenges of Electric Cars
Volvo’s new model program is designed to make it easier and more attractive for Danish customers to choose electric cars, which offer several benefits over conventional cars. Some of these benefits are:
- Lower emissions and environmental impact. Electric cars produce zero tailpipe emissions, which does not contribute to air pollution and climate change. According to a study by the European Environment Agency, electric cars emit 17% to 30% less greenhouse gases than petrol and diesel cars over their entire life cycle, considering the production, use, and disposal of the vehicles.
- Lower operating and maintenance costs. Electric cars are cheaper to run and maintain than petrol and diesel cars, as they have fewer moving parts and do not require oil changes, spark plugs, or filters. According to a study by the International Council on Clean Transportation, electric cars can save drivers up to 27% on fuel costs and up to 40% on maintenance costs compared to petrol and diesel cars in Europe.
- Higher performance and driving experience. Electric cars offer a smooth and quiet ride, as they do not have a noisy engine or a gearbox. They also have a high torque, which means they can accelerate faster and more responsively than petrol and diesel cars. For example, the XC40 Recharge can go from 0 to 100 km/h in 4.9 seconds, while the C40 Recharge can do it in 4.7 seconds.
However, electric cars also face some challenges and barriers that may deter some customers from switching to them. Some of these challenges are:
- Limited range and charging infrastructure. Electric cars have a lower range than petrol and diesel cars, so they must be recharged more frequently. This can be a problem if there are not enough charging stations available or if they are too far away from the driver’s destination. According to a European Automobile Manufacturers Association report, Denmark had 2,758 public charging points in 2020, equivalent to one charging point for every 10 electric cars. This is below the European average of one charging point for every seven electric cars.
- Higher purchase price and depreciation. Electric cars are more expensive than petrol and diesel cars, as they have a higher production cost due to the battery and the electric motor. This can make them less affordable and accessible for some customers, especially those with a low income or a tight budget. Electric cars also tend to lose their value faster than petrol and diesel cars, as the battery degrades over time and reduces the range and performance of the vehicle.
- Lack of consumer awareness and education. Electric cars are still relatively new and unfamiliar to many customers, who may not know much about their features, benefits, and drawbacks. This can lead to misconceptions, doubts, and fears about electric cars, such as their safety, reliability, and suitability for different driving needs and preferences. Therefore, there is a need for more information and education to raise consumer awareness and confidence in electric cars.
How Danish Consumers are Responding to Volvo’s Electrification Strategy
Despite the challenges and barriers that electric cars face, Volvo’s electrification strategy seems to be paying off in Denmark, where the demand for electric cars is growing rapidly. According to the Danish Electric Car Alliance, electric car sales in Denmark increased by 157% in 2020, reaching a market share of 8.5%. This is higher than the European average of 6.8%.
Volvo’s electric cars are also gaining popularity and recognition among Danish customers and critics. The XC40 Recharge was named the Car of the Year 2020 by the Danish Motor Journalists’ Association, which praised its design, quality, safety, and performance. The C40 Recharge, which is expected to arrive in Denmark in the second half of 2021, has already received over 1,000 pre-orders from Danish customers, according to Volvo Car Denmark.
Volvo’s success in the Danish electric car market can be attributed to several factors, such as:
- Volvo’s strong brand reputation and loyalty. Volvo has a long history and presence in Denmark, where it is known for its high-quality, safe, and reliable cars. Volvo is also one of the most trusted and respected car brands in Denmark, ranking second in the 2020 BrandIndex survey by YouGov. Volvo’s loyal and satisfied customers are more likely to choose Volvo’s electric cars over other brands, as they trust Volvo to deliver on its promises and values.
- Volvo’s innovative and attractive electric car models. Volvo’s electric cars are not only environmentally friendly but also stylish, comfortable, and fun to drive. They offer a premium and distinctive design, a spacious and luxurious interior, and a range of advanced features and technologies, such as a 12.3-inch digital driver display, a 9-inch touchscreen infotainment system, a Harman Kardon sound system, and a Google-powered operating system. They also have a high safety rating, as they are equipped with a range of active and passive safety systems, such as airbags, seat belts, blind spot detection, lane-keeping assist, and collision avoidance.
- Volvo’s competitive and flexible pricing and financing options. Volvo’s electric cars are priced competitively compared to other premium electric SUVs in the market, such as the Audi e-tron, the Mercedes-Benz EQC, and the Tesla Model Y. They also offer a lower total cost of ownership, as they have lower fuel and maintenance costs, as well as tax exemptions and subsidies for electric cars in Denmark. Moreover, Volvo’s electric cars are available through Care by Volvo, a subscription service that allows customers to rent a Volvo car for a fixed monthly fee with no down payment or long-term commitment. This gives customers more flexibility and convenience, as they can switch to a different Volvo model or cancel the subscription at any time.