Volvo’s switch toward electric vehicles to will start in China

We expected the playing field in electric vehicles to become more competitive as a growing number of manufacturers looked to challenge Tesla (TSLA). Given the Rising Middle-Class and level of pollution in China — according to the Chinese Ministry of Health, industrial pollution has made cancer China’s leading cause of death — we are not surprised that Volvo would begin this transition away from combustion engines. The implications to watch will be the price points at which Volvo brings these all-electric models to market in China.

Volvo Cars will build its first electric vehicles in China as it moves to develop an entirely electrified lineup, and the automaker also is unveiling a subscription service as an alternative to car buying, CEO Hakan Samuelsson told The Nikkei in a recent interview.

The Sweden-based automaker surprised the world in July by announcing that all new-model releases starting in 2019 would be electrified.

Volvo plans to roll out five electric cars by 2021, with the first debuting in 2019 under the new premium electric vehicle brand Polestar. Volvo will build this in China with parent Geely Automobile Holdings, hoping to take advantage of economies of scale.

Source: Volvo’s switch toward electric will start in China, CEO says- Nikkei Asian Review

About the Author

Chris Versace, Chief Investment Officer
I'm the Chief Investment Officer of Tematica Research and editor of Tematica Investing newsletter. All of that capitalizes on my near 20 years in the investment industry, nearly all of it breaking down industries and recommending stocks. In that time, I've been ranked an All Star Analyst by Zacks Investment Research and my efforts in analyzing industries, companies and equities have been recognized by both Institutional Investor and Thomson Reuters’ StarMine Monitor. In my travels, I've covered cyclicals, tech and more, which gives me a different vantage point, one that uses not only an ecosystem or food chain perspective, but one that also examines demographics, economics, psychographics and more when formulating my investment views. The question I most often get is "Are you related to…."

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