Competition in the European automotive market is intensifying and a price war may be on the horizon, according to Volvo Cars CEO Håkan Samuelsson, as reported by Sveriges Radio.
Samuelsson points to supply outstripping demand and suggests that price pressures in China could spill over into Europe as Chinese players enter the market.
"Here in Europe, there is a strong possibility that we will see many new Chinese entrants," he says.
To counter lower prices, manufacturers may simultaneously need to implement cost-cutting measures, according to Samuelsson.
Volvo Car AB is a Sweden-based automotive brand. Volvo Car Group is focused on the design, engineering, manufacturing, distribution and sale of passenger cars, with particular focus on sustainability, fully electric cars and direct consumer relations, including subscription and other new mobility services. Volvo Car Group’s addressable market is the global premium passenger car market. Moreover, the Company’s intention is to be a pure electric car company and as a result it is undergoing a shift in its business model to a direct sales model in most of its markets. Volvo Cars’ commitment to electrification also results in the launch of Polestar, a progressive stand-alone electric performance car brand, in which Volvo Cars owns shares. Volvo Cars also holds shares in the automotive brand LYNK&CO, which focuses on young open-minded urban people through a flexible customer offering.
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