The Secret Behind Selling Volvo Electric Cars Imported from Europe Thousands of Won Cheaper Than Local Prices

Volvo Cars Korea Launches First Electric SUV C40 Recharge
High-Spec Full Package Priced at 63.91 Million KRW
Set 10 to 30 Million KRW Lower Than UK, Germany, and US
Consulted Headquarters to Meet High-Spec Preference in Korean Market

Volvo Cars Korea unveiled the brand's first coupe-style pure electric SUV, the 'C40 Recharge,' on the 15th at Dongdaemun Design Plaza (DDP) in Seoul. CEO Lee Yun-mo is posing with the vehicle. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Choi Dae-yeol] Volvo Cars Korea officially launched the C40 Recharge, the first model applying an electric vehicle-exclusive platform, in South Korea on the 15th. For the first time in Volvo's history of over 90 years, a coupe-style sport utility vehicle (SUV) was developed and applied to the first electric vehicle model, which will be a core model of the electrification strategy.

What draws attention is the domestic launch price. Even with all the various safety systems and convenience features applied to the top trim, the price is 63.91 million KRW. With similar options, the selling price in the UK is about 93.8 million KRW, approximately 30 million KRW higher. It is also cheaper than the selling price in Germany at 86.4 million KRW, and considering the US, where new car sales competition is the fiercest in the world, is 72.85 million KRW, the company emphasized that the domestic launch price is low compared to any global market. This model is currently manufactured at the factory in Ghent, Belgium (local pronunciation: Gent) and supplied worldwide.

The reason for such an 'aggressive' pricing is said to be possible because the importer (Volvo Cars Korea) consistently persuaded the headquarters (Volvo Cars) considering the purchasing patterns of domestic consumers. The internal combustion engine models currently sold by Volvo are divided into Momentum and Inscription trims, and in Korea, the purchase ratio of the expensive Inscription trim accounts for 95%, practically the majority. Since there is a high demand for expensive models, they secured a large volume of high-spec upper trims uniformly, thereby lowering the price.

Im Man-sik, Executive Director of Volvo Cars Korea, said, "Over the past 10 years, we have steadily increased sales performance by double digits every year, and the headquarters' status toward the Korean market has changed," adding, "Especially since the sales ratio of upper trims accounts for a significant portion, we were able to make the domestic selling price competitive this time."

Volvo Cars Korea unveiled the brand's first coupe-style pure electric SUV, the 'C40 Recharge,' on the 15th at Dongdaemun Design Plaza (DDP) in Seoul. It features an infotainment system developed in collaboration with domestic company T map Mobility. Photo by Moon Honam munonam@

Volvo Car Korea unveiled the brand's first coupe-style pure electric SUV, the 'C40 Recharge,' on the 15th at Dongdaemun Design Plaza (DDP) in Seoul. The photo shows the rear tailgate opened. Photo by Moon Honam munonam@

Although specific figures were not disclosed, it seems that both the importer and domestic dealers focused more on increasing overall sales volume rather than profitability per unit. In the electric vehicle market, which is just beginning to bloom and where the boundary between domestic and imported vehicles is less distinct compared to internal combustion engines, price competitiveness was judged to be important for market preemption.

Yoon Mo Lee, CEO of Volvo Cars Korea, said, "We are confident that the price competitiveness of Volvo's electric vehicles is superior not only compared to any country where Volvo is sold worldwide but also compared to electric vehicles of other brands in the same class," adding, "We have set a goal to sell more than 50% of the volume sold domestically as electric vehicles by 2025 and to be among the top three premium electric vehicles."

Volvo Car Korea unveiled the brand's first coupe-style pure electric SUV, the 'C40 Recharge,' on the 15th at Dongdaemun Design Plaza (DDP) in Seoul. Photo by Moon Honam munonam@

As for competing models in the domestic market, CEO Lee predicted that Mercedes-Benz's EQA and the domestic high-end brand Genesis's GV60 would be the main competitors. Considering that the mid-to-high trims of these models start from the mid-64 million KRW range, it is expected that there will be a considerable number of prospective customers who will give passing marks to the price of the C40 Recharge.

The key issue is securing supply volume. Due to the semiconductor supply shortage that has continued for over two years since the early days of COVID-19, Volvo is also in a situation where immediate vehicle delivery upon customer request is not easy. CEO Lee said, "We have secured a volume of 2,000 electric vehicles this year, including 500 units of the XC40 Recharge," adding, "Especially for electric vehicles, the waiting period is longer, so delivering the vehicle at the time the customer wants is more important."

This content was produced with the assistance of AI translation services.