Volvo Australia outlines new models and unprecedented volume plans
New models and new buyers, yet the same brand philosophy around safety: Volvo Australia has outlined its plans for Australia, including the models it believes will push local sales to unprecedented heights within the next three years.
In an all-encompassing launch in the Southern Highlands region of NSW this month, Volvo Australia managing director Stephen Connor explained his strategy for Volvo locally, its core focus on safety, and why internal combustion options will remain on the menu longer than first thought.
The brass tacks: Volvo is aiming for a 50 per cent increase in local annual sales between 2025 and 2028. Key to that growth will be new models including the forthcoming ES90 large sedan, as well as the brand-new EX60 mid-size electric SUV, which will be unveiled to the public in late January and utilise the car maker’s new SPA3 platform.
Speaking with Open Road, Connor outlined plans to grow volume sustainably and organically in Australia – simply as a by-product of compelling products and through entering new segments.
“We’re not looking for volume in Australia, or around the world. For us, we will get to roughly 12,000 sales (annually) for a couple of different reasons,” Connor explained.
“Firstly, through different segments – as a number of new models come through we will push those. We’ve got great plans for the ES90 sedan and the EX90 SUV, they will grow volume.
“When we launch the EX60 SUV in Australia, that will be crudely about 2000 to 2500 units for us in Australia. With that, we’re suddenly at around 12,000 sales.
“Our biggest year in Australia was about 11,500 sales and that was a couple of years ago. This year we’re heading for about 8000 sales. I expect we will be at about 12,000 cars by 2028.”
Volvo is being quite strategic about the models and variants it selects for Australia; it recently ousted the long-running S60 and V60 nameplates from its line-up and has been selective around which variants it will take from the new ES90 range. The latter will be strictly available in rear-drive form only, with a $88,880 (plus ORCs) Plus Single Motor model and topping out at $107,990 (plus ORCs) for the Ultra Single Motor variant.
Between the EX60 and the ES90 – not to mention a host of other new nameplates – Volvo is continuing its transition towards full electrification. That said, the petrol engine will continue to power Volvo’s most successful models for some time yet.
The brand had originally slated 2026 as the end of combustion within its line-up before walking back from that decision earlier this year following continued demand for such drivetrains from customers. As a result, both the XC60 and XC90 SUVs have been thoroughly refreshed earlier this year.
“We will still get to electric-only, it’s just a case of when,” said Connor.
“The XC60 is the best-selling Volvo model ever, so why wouldn’t you look to refresh those cars? That said, every new shape that is coming through is fully electric, so we will still get to that milestone.
“We are still committed – both on a local level and global level – to being fully electrified. We are still committed to 2040 and being climate neutral.
“The world has changed in the past couple of years. When we made the announcement [about 2026], it was based on consumer demand, and it was based on product availability. What’s happened with that is that we’ve seen a shift in consumers going from a mild-hybrid or petrol car to a plug-in hybrid or electric car.
“What we’ve also seen with the PHEV (plug-in hybrid electric vehicle) technologies is the improvement in battery range. It has already gone from 35km to 70km. In the next generation we’ll be looking at 150km battery range, which makes the plug-in hybrid a terrific option.”
Connor said that Volvo had enjoyed buoyant sales in Australia with more buyers crossing over from the likes of Volkswagen and Subaru, in a bid for more luxury.
He is adamant Volvo will continue to distinguish itself as the safety torchbearer of the car industry, irrespective of volume or price points. Volvo’s broader management team was also unwavering on the safety charter.
Volvo famously aimed for zero deaths or serious injuries in its new models by 2020, under its ambitious Vision 2020 plan. While elements of that strategy remain intact, the company is now striving for zero collisions in its new models thanks to ever-evolving technology and driver aids.
“We know that there hasn’t been a serious injury or death in a new Volvo XC90 – that’s a fact; we can quantify that,” said Connor.
“Vision 2020 is still talked about internally and we talk about how our cars are saving lives. We talk about the heritage – items like the three-point seatbelt – and about what’s coming.
“We don’t just do a test on a car and crash it for five stars. We then take it to the next level, and that’s part of who we are… What we’re seeing now from our designers and engineers is that safety is our core foundation but we’re now going to the next level.”
