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According to the official release of Volvo Automobile Group, Volvo sold 48520 vehicles worldwide in January 2023, up 2.0 per cent from a year earlier. Affected by the Spring Festival holiday, Chinese mainland has become the only market for Volvo to decline. Volvo sold 11783 vehicles on Chinese mainland in January, down 19.5 per cent from a year earlier, while the European market rose 14.7 per cent to 21436 and the US grew 8.2 per cent to 7693, according to the data.

From being acquired by Geely in 2010 to selling 171400 vehicles annually in the Chinese market in 2021, Volvo has indeed achieved a leap, but the current competition in China's automobile market is particularly fierce, especially in the context of the substantial expansion of new energy vehicles. the luxury car market began to be eroded by new power brands such as Azura and ideals, while the weak traditional second-tier luxury brands are already facing multiple crises. Therefore, compared with other traditional luxury brands, Volvo is more confident in developing electrification.

In 2021, Volvo announced a rather radical plan. Volvo says its pure electric models will account for 50 per cent of total sales by 2025, with the rest in hybrid models. By 2030, Volvo will transform into a pure electric brand, when it will sell only pure electric cars, eliminating all cars with internal combustion engines around the world. By 204, Volvo strives to become a climate zero-load benchmark, and all pure electric models will be sold online only.

The electrification transformation is considered an important part of Volvo's sustainable strategy, which means that cars powered by internal combustion engines will be completely removed from its product catalog, including hybrid vehicles. In the future, Volvo's product lineup will be made up of 100% pure electric models. Volvo plans to convert all its major models into electric cars, including three SUV (XC90, XC60, XC40) and two cars (S60, S90), as well as a luxury electric van to boost sales in the Asian market, according to foreign media reports. Volvo is expected to launch at least six new all-electric vehicles by 2026, with the EX90, the first electric SUV, unveiled at the end of 2022 and scheduled to launch in early 2024, two people familiar with the matter said.

Electrification transformation is considered to be an important part of Volvo's sustainable strategy. "to maintain our market leadership, we must invest more in electrified models and new business models," said H å Samuelson, president and chief executive of Volvo Automotive Group. Volvo is committed to becoming the market leader in the luxury brand pure electricity segment. However, if Volvo strictly follows the plan, it will have only 10 years left for Volvo.

As one of the first traditional luxury brands to start electrification transformation, it is the first to realize the electrification of the whole series of models, and has achieved preliminary results. Volvo sold 615121 cars worldwide in 2022, down 12.0 per cent from a year earlier, but the share of pure electric cars rose from 3.7 per cent in 2021 to 10.9 per cent in 2022. In the Chinese market, Volvo sold 162322 vehicles for the year, down 5.4% from a year earlier, while sales of pure electric models rose 201% year-on-year.

Although Volvo electric cars have skyrocketed in the Chinese market, they have a low market share. According to the official website, Volvo currently implements four domestic models in China, including S90, S60, XC60 and XC40, of which S90, S60 and XC60 launch plug-in hybrid models on the basis of fuel vehicles, while XC40 launches pure electric models on the basis of fuel vehicles. Of course, Volvo electric cars perform poorly in the Chinese market. The data show that XC60 RECHARGE sales in 2022 were 3110, followed by S90 RECHARGE, 2740, and S60 RECHARGE, 1836.

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