Volvo CEO predicts EVs cheaper than gas cars by 2030

Wednesday 04 - 14:50

By: Dakir Madiha

Volvo CEO predicts EVs cheaper than gas cars by 2030

Volvo CEO Håkan Samuelsson forecasts that electric vehicles will "very likely" cost less than gasoline-powered cars within five years. Speaking at a press event in Gothenburg, Sweden, this week, he highlighted his company's already profitable EV lineup and upcoming manufacturing advances set to drive costs even lower.

"I think if you look in five years, I'd say an electric car will very likely cost less than a combustion car," Samuelsson told reporters, per The Drive. This timeline points to price parity around 2030-2031.

His outlook bucks industry headwinds. Ford revealed in December a $19.5 billion hit tied to scaling back its EV push, including an $8.5 billion asset writedown for its Model e division. That unit has lost over $13 billion in under three years.

Volvo, however, claims profitability across its EVs, albeit with slimmer margins than traditional models. "Our current electric cars have a lower margin, I think that's no secret, but they are profitable," Samuelsson said. "We are not paying to have them."

He stressed that EVs bolster Volvo's finances: "Our business is more profitable now that we have electric vehicles. If we didn't have electric vehicles, we would be less profitable."

Samuelsson's confidence stems largely from production innovations debuting in the 2027 EX60, unveiled in January. This compact SUV employs megacasting replacing hundreds of small parts with a single high-precision aluminum casting and integrated battery structural technology, embedding battery packs directly into the chassis.

These advances boost energy density by 20 percent, enable 31 percent faster charging, and cut weight, Volvo states. The EX60 starts at €62,990 in Germany cheaper than the gasoline XC60 at about €67,990.

On game-changing tech like solid-state batteries, Samuelsson urged realism: "The grass is always greener elsewhere, but I think if you wait for that, you probably won't be in the market anymore."