/PRZWT/GUANGZHOU, May 7, 2024 - When running a marathon, if you see someone running fast, you should feel lucky, because there is a high probability that you will not see him in the second half. "Yuan Xiaolin, senior vice president of Volvo Car Group and president and CEO of Volvo Cars Asia Pacific, said in a recent interview with the media.
In the past two years, the car market has intensified, price wars have emerged one after another, and foreign car companies are considered to be under greater pressure because of the slow transformation of electric vehicles. However, Yuan Xiaolin believes that the competition in the automotive industry is a marathon, and those who run fast may not reach the end, so there is no need to be overly anxious. Compared with the temporary sales volume, what is more worthy of attention is how to balance the short, medium and long-term relationship, including the volume-price relationship, market share, brand positioning and other dimensions. Volvo Asia Pacific's focus this year is on not being chaotic or panicked, and specific problems are analyzed in detail to maintain the health of the enterprise system.
In 2023, Volvo's global sales reached 708,716 units, of which 180,234 units were sold in Greater China, all setting a record high. What's more noteworthy is that Volvo sold a total of 113,419 pure electric vehicles in 2023, an increase of 70% year-on-year, accounting for 16% of its total global sales.
In terms of operation, Volvo's operating income reached 399.30 billion Swedish krona in 2023, an increase of 21% year-on-year; operating profit (excluding joint ventures and associates) reached 25.60 billion Swedish krona, an increase of 43% year-on-year.
In the Chinese market, Volvo's new energy vehicle sales are relatively average. Although the year-on-year growth rate reached 25%, the absolute sales figure is still low. Yuan Xiaolin said that the direction of Volvo's electrification is clear, but there are different development processes and challenges on a global scale. Volvo will make adaptive adjustments according to the market environment, infrastructure building and user acceptance, and steadily promote product launch according to market demand and development rhythm.
"I always believe that the Chinese market is a big river, and the water rises and falls naturally, so it is difficult to give a particularly accurate forecast of the development of the Chinese market. I think any overly pessimistic or optimistic expectations are dangerous. When the water level of a big river rises or falls, the width and depth of the river are different, and with it comes more possibilities and more choices. As a small boat on the big river of the Chinese market, what Volvo can do is to clearly judge the water level without any hesitation, but also not to rush or jump the gun inexplicably," Yuan Xiaolin said.
In response to the rapidly changing and highly competitive Chinese market, Volvo Asia Pacific needs to establish a clear operation plan, grasp the changes in every link and the real data changes every day, and make the right decisions. Secondly, it is to continuously improve the system ability, not only to have a clear and accurate understanding of external market changes, but also to achieve close integration and efficient communication among various departments.
In response to the challenge of Volvo's luxury brand perception in the era of electrification, Yuan Xiaolin emphasized Volvo's continued commitment to safety, health, sustainability and personalization. He believes that Volvo should not give up the genes, values and brand labels formed in the past 100 years. Strategic definition is as important as keeping pace with the times.
It is worth mentioning that Volvo Asia Pacific has continued to increase its investment in electrification in China in the past few years. The R & D center in Shanghai has successively expanded its battery center, battery laboratory and other functions. At the 2024 Beijing Auto Show, Volvo launched a new pure electric SUV EX30, with a pre-sale price of 210,000 yuan to 260,000 yuan.
