Can Volvo’s New Electric SUVs Help Revamp EV Sales in the US?

Volvo is banking on its new electric SUVs, the EX90 and EX30, to revitalize its electric vehicle (EV) sales in the US market. The brand has faced significant challenges, with a 72% drop in electric vehicle sales in the first half of 2024 compared to the previous year. This decline has reduced Volvo’s share of the US EV market from 0.4% to 0.3%.

Despite these setbacks, Volvo is optimistic about the potential of its upcoming electric models. The flagship EX90, a three-row SUV, is expected to hit US dealerships later this year. This model is designed to appeal to families and those seeking a premium, spacious EV.

Following the EX90, Volvo will introduce the smaller, more affordable EX30 in the second half of 2025. This compact SUV is aimed at attracting younger buyers and those looking for a more budget-friendly electric option. It will start at $34,950 and likely become one of the most affordable EVs in the US.

Volvo Cars US President Michael Cottone believes these new models will help the company regain momentum in the competitive US EV market. The introduction of these SUVs comes at a crucial time as consumers increasingly shift towards electric vehicles. If Volvo can successfully position the EX90 and EX30 to meet the needs of US buyers, the company could see a significant boost in its EV sales and market share.

The EX90 marks a significant milestone for Volvo, as it is the first vehicle in the company’s nearly 100-year history to be developed and launched outside of Europe. According to Cottone, the EX90 was specifically designed with the U.S. market in mind and will be built domestically.

By focusing on a three-row SUV—a popular segment in the U.S.—Volvo aims to attract a broader range of customers, particularly families looking for a premium electric vehicle with ample space. The fact that the EX90 is being produced in the U.S. also aligns with the growing trend of localizing EV production to meet demand and navigate regulatory requirements, such as those related to tax incentives.

The Volvo EX90, Volvo’s first three-row electric SUV, rolled off the production line in South Carolina in June 2024, with deliveries scheduled to begin later this year. Originally, Volvo announced a starting price of $77,990 for the EX90. However, due to increased U.S. tariffs on the battery, which is supplied by China’s CATL, Volvo had to raise the price. The EX90 now starts at $81,290, including the destination fee.

The tariff increase reflects the complexities of global supply chains, especially when involving components from China. Volvo, owned by China’s Geely, alongside brands like Lotus and Polestar, faces the challenge of navigating these economic pressures while maintaining competitive pricing.

Despite the price hike, the EX90’s launch remains crucial for Volvo as it aims to make a strong impact in the U.S. EV market. The vehicle’s production in South Carolina and its design tailored specifically for American consumers are significant factors that could help Volvo gain traction, even with the higher price point.

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