Volvo's CEO Håkan Samuelsson has stated that electric vehicles will most probably be lower in cost than combustion cars within the next five years. 5 billion loss on its electric car push, with Samuelsson claiming success despite the financials.
Volvo's EVs are profitable and contribute to the company's increased profitability. Without EVs, Volvo would likely have lower volume and profits.
However, the extra volume generated by EVs makes a business case without losing money. Samuelsson attributes the higher margins of electric cars to their lower production costs due to new manufacturing methods and in-house developed motors.
The introduction of cell-to-body integration and mega castings is expected to bring down the cost of electric vehicles further. Lower battery costs, particularly with the adoption of LFP batteries, are also seen as a key factor in making EVs more profitable.
Samuelsson emphasizes the importance of being in business and learning, rather than waiting for ideal technology. The development of solid-state batteries is still in its early stages, but it's expected to bring significant cost reductions.
As a result, electric vehicles will likely become more competitive with gas-powered cars in terms of price.