Volt-face: Volvo shifts gears with new EV offerings in Thailand
Volvo Car Thailand is gearing up for modest growth in car sales, capped at 5% this year, by revving up its appeal with fresh electric vehicle models and an innovative battery repair service.
This bold strategy aims to keep long-term maintenance costs low for drivers and attract more eco-conscious consumers.
Chris Wailes, managing director of Volvo Car Thailand and Malaysia, acknowledges the bumpy road ahead for the Thai automotive industry.
“Weak auto loans, high household debt, and a sluggish economy are presenting significant challenges.”
With financial institutions tightening lending to reduce non-performing loans and household debt to GDP hovering around 90% last year, the industry is bracing for impact.
Volvo predicts domestic car sales to hover between 550,000 and 560,000 units this year, slipping from 572,675 units in 2024. The premium car market in Thailand is expected to idle, maintaining 40% of total car sales.
While assessing the ripple effects of the new US trade policy under Donald Trump on global sales, Wailes remains confident that the parent company can weather the storm, minimising direct impacts on Volvo Car Thailand.
However, the US recently slapped an additional 10% tariff on Chinese goods, with Beijing countering with a 15% tariff on US coal and LNG products. Concerns loom over increased Chinese EV exports to Southeast Asia amid renewed US-China trade tensions.
Volvo is set to accelerate its sales of battery EVs and plug-in hybrid EVs (PHEVs) this year, targeting fully electric models to make up 80% of sales by 2024, a 24% year-on-year surge. Wailes believes PHEVs could become more popular in Thailand, thanks to their affordability, reported Bangkok Post.
To further enhance customer value, the company plans to bolster after-sales services, said Wailes.
“We’ll be launching a battery repair centre by mid-year, alongside smart repair services for quick, cost-effective fixes on small to medium-sized bodywork damage using cutting-edge techniques.”
With these advancements, Volvo will attempt to steer Thailand’s automotive industry towards a brighter, greener future.
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