Volvo News

Volvo warns that "something has got to give" in Australia's new-car market, with too many brands now fighting for too few sales for all to survive.That's the word from Volvo Car Australia Managing Director Stephen Connor, with the senior executive also detailing how his brand will survive the new-marque onslaught."We've got 70-plus OEMs here, and we've probably got another 20 arriving on our shores in the next short period of time. It is crazy," he said."The market is, they reckon, 1.2 million this year. I personally think it's about one million, but let's go with the experts, and they're saying it's 1.2."So 1.2m (sales) with probably 90 OEMs – something has got to give."I think the people who will struggle are the people who are going to be fighting in that volume segment. And I think, good on the new entrants coming in. They're going to bring a new dynamic."Asked whether all 90 brands would still be in Australia in five years time, the executive replied "I don't think so"."I think there will be some consolidation, and this is only my personal view," he said, "I think some brands who have come in, the new ones, have gone, (saying) this is too hard and too difficult."His thoughts echo those of Kia, Toyota and other major players, all of whom suggest the new-car makeup in Australia is going to change, though Volvo is in a unique position, given several of the new players – Polestar, Geely, Zeekr and the soon-to-arrive Lynk & Co – are all part of its extended family .But Volvo says realistic expectations and a business model not contingent on extreme volume will ensure the marque survives in Australia."We're looking for marginal growth this year, which is okay. We've gathered production based on marginal growth," Mr Connor says."I think it's important for us to grow as a brand. But we don't need to grow by 20 per cent. Five per cent, two per cent – that's good enough for us as we go forward. Our production this year is based off about 9,500 units. And we're comfortable to achieve that."A changing product line-up will fuel that marginal increase, Mr Connor says, with some well-known models on the way out, replaced by vehicles the brand hopes will capture more sales."So S60 and V60, we say goodbye this year to those models. They were only about 300 cars a piece. There's a lot of time and energy spent just to sell 300 cars, and as you know, sedans are struggling in this marketplace," he says."We've got the EX90, which will be about 300 cars this year. We've got XC90, the new one. So that will be about 1100 units roughly. We'll get some extra growth from EX30 Cross Country. We have refreshed XC60, a big segment for us. It's normally about 3000 cars. Then later on this year we've got the ES90 as well, which will be small volumes again."But you see, we've consolidated the line-up. So that's where our growth will come from. Refreshed XC90, refreshed XC60. We've got obviously XC40, which is still a great seller for us as well, and then you've got EX30."

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Yet another Chinese brand in Australia? Sort of.Zeekr Australia’s General Manager, William Zhou, told CarsGuide that thanks to the change in ownership and Lynk & Co falling under Zeekr’s direction, a launch is very much on the cards for Australia.“Exactly” Zhou said when asked about Lynk & Co now being possible for our market.“It’s something we’re working on right now," he said.“For us here, in a right hand drive market, Lynk & Co previously didn’t have right-hand drive products, so we’re working on that.“Also, because in Australia we know that EVs stand for technology and innovation, but when it comes to daily use plug-in hybrids should be another major choice. So we’re confident the current product from Lynk & Co with petrol and hybrid technology will do really well in Australia, so we’re pushing to have Lynk & Co products, but under one brand, Zeekr.”Zhou explained it would be a full-control type scenario in Australia, with Lynk & Co models being distributed by Zeekr from the same dealer network the premium Chinese marque is currently building out in Australia.Lynk & Co and Zeekr were completely separate entities prior to November 2024, when both brand’s ultimate parent company, Geely, re-organised its shareholdings to place Lynk & Co under the control of Zeekr, divesting Volvo’s share from the business.Zhou wants Lynk & Co hybrids to hit our shores in the near future.“I think we’re trying for next year, but nothing is confirmed yet. There’s a lot of engineering involved.” said Zhou.Zhou said Australia is a priority and could potentially be the first RHD market for Lynk & Co.“We’ll try”, Zhou explained of Australia being a launch-market for right-hand drive. “I think the European market is hard . There are some tariff issues. Maybe the UK. But Australia is an iconic market for right-hand drive, so we’re working on that.”Zhou wasn’t ready to talk exactly what product was high on the right-hand drive priority list, but he said the company was very conscious of not overlapping with Zeekr models in order to make sure both nameplates had a chance to shine.“We should position smartly. With the future coming models from Lynk & Co we should work on how to make it cover the range without cannibalising each other.”Zeekr’s current and future line-up consists of the X small SUV, 009 people mover, and 7X mid-sizer, which leaves room for several products from Lynk & Co.A good place to start would be one of its more recent models, the 08 SUV that would bring a coupe-sized plug-in hybrid alternative to sit underneath the slightly larger, more conventional 7X SUV from Zeekr.The 08 rides on Volvo’s compact modular architecture (CMA) and is available as a plug-in hybrid (EM-P in Lynk & Co language), which pairs a 1.5-litre four-cylinder engine with a dedicated hybrid transmission and massive 39.6kWh battery pack good for a driving range of up to 245km according to the lenient CLTC testing cycle. If it maintains a similar specification, it would be the longest range plug-in hybrid in Australia.Other options include the 07 sedan with a similar PHEV drivetrain, 05 small coupe SUV (essentially a PHEV take on the Volvo C40 electric SUV). Less likely seems to be the XC40-based 01 SUV and 03 sedan, and the now-dated 09 SUV.The 900 six-seat flagship SUV, which sit on the latest SPA Evo architecture complete with next-generation styling, could be a possibility.The 900 features the brand’s next-gen plug-in hybrid tech consisting of either a 530kW model using a 1.5-litre turbocharged four-cylinder engine and a 43.3kWh battery pack providing up to 185km of EV driving range on the CLTC standard, or a 2.0-litre four-cylinder model providing up to 630kW that has an even larger 50kWh battery pack providing a driving range of up to 220km (CLTC).Zeekr has only just started deliveries in Australia, with a mere 100 units on the road, but Zhou said the brand is happy with the level of demand it is seeing for its existing range of premium electric models, which serve as an alternative to the likes of BMW, Mercedes-Benz, and Audi.The brand also needs to fight off other newcomers such as Xpeng, Chery’s Jaecoo sub-brand, and BYD’s Denza marque, which all have similar ambitious plans for Australia in 2025 and beyond.

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