How Volvo Australia is investing in brand to charge ahead on EVs 

Volvo, which has vowed to become an all-electric car company in Australia by 2026, believes that it’s imperative to invest in brand rather than just keep “doing things to sell cars”, managing director Stephen Connor said at the WPP House in SXSW Sydney.

Why this matters

The luxury car brand first announced the all-electric vehicle (EV) plan in October last year and plans to be seen by consumers as a sustainable mobility company. While Volvo Car Australia said the EV plan will have a negative impact on profits, the long-term opportunity for brand and sales growth is significant. The company has previously said it plans to double car sales in Australia over the next three years. 

The sustainable brand vision 

• Volvo Car Australia said it has a moral obligation to hasten the move to sell electric only vehicles, because the bulk of consumers want to do the right thing and own sustainable vehicles. 
• By 2025 Volvo has committed to reduce its global carbon footprint by 50%. The company is aiming for climate neutral operations by 2040. It already has three climate neutral factories. 

• Volvo Car Australia has told its partner retailers that it wants them to also be sustainable in their operations. 
• Volvo will ensure that all EV cars transported to Australia arrive on electric-powered ships. 

Future plans 

• The company expects to transition from a traditional car manufacturer to a company based on software and technical services. 
• Volvo Car Australia said its next step is to build battery repair centres in Australia to create a “circular environment” that firmly establishes a sustainable electric vehicle market. 
• The company said it needs to change its relationship with its consumers, including more flexible and personalised services, with expectations that customer experience will be overhauled. 
• Future models could see Volvo Car Australia offer membership models, and Volvo “concierge as a service” models. Consumers could hire Volvo cars via Uber, as new user-ship, not ownership, models emerge. 
• The move to sustainable vehicles is an opportunity to bring new people into the industry, and secure talent based on their green brand positioning.
• The company said it will only partner with other brands that share the same authentic vision. Volvo Cars Australia has recently partnered with Taronga Zoo in Sydney. 

Key quote 

“There’s also a commercial element to our plan. It’s not just about being green and sustainable. Battery and electric vehicle sales are going through the roof. We are a 2% market player. We want to be the first transformers and set the pace in our industry” – Volvo Car Australia Managing Director Stephen Connor. 

Author: Duncan W Craig