Volvo: Discounting cars is no good for any brand

Volvo Cars Australia managing director Stephen Connor has taken aim at brands that “heavily discount” new vehicles shortly after launching them Down Under, declaring there’s no value in wiping thousands off a new car.

Speaking to local media this week, the local Volvo boss defended the brand’s conservative product strategy, which should see the Swedish brand avoid the costly move of having to heavily discount cars it can’t shift.

The strategy will see Volvo launch single-motor versions of the inbound ES90 sedan next year, while the possible introduction of the flagship dual-motor ES90 available overseas will be dependent on the success of the rear-drive electric sedan.

“We spend a lot of time analysing the market, the price points and making sure that when we bring a product into Australia, it sits at the right price and obviously it's competitive within that segment,” Connor said.

“That’s not to say the twin [motor] won’t be [competitive], but at the moment we're launching with what we've got today.”

Connor said Volvo will watch the segment over the next six months before deciding whether to introduce any pricier dual-motor variants, which could cost as much as $130,000, judging by the exec’s comments.

According to Connor, bringing a vehicle to Australia and only selling 50 units a year isn’t financially viable – as evidenced by the retired S60 and V60 – hence the decision to offer the more affordable single-motor ES90s (from $88,880 + ORCs) first.

“There's a lot of cost, a lot of expense for the dealers, they have to have demos, for a small market,” he said.

“The higher you go up past $90,000 in terms of the price band, the less of the volume that comes. So, it's got to be worthwhile both for us, our dealers and consumers.

“So, it's not saying no [to the dual-motor]. But if it's going to be an incremental of 50 units, then it's not really something high on the agenda.”

When asked whether the move was to avoid falling into the same trap of having to discount slow-selling EVs – with poor resale value – as Mercedes-Benz and BMW have, Connor said cutting prices was “no good for any brand”.

“It’s no good coming out with a car and saying, your MSRP is X and then within six months of launching a car, you’re having to discount or tactically support that car to push volume,” he said

“That doesn't do anybody any favours.

“They're not into pushing volume for the sake of pushing volume. We don't need to do that, and that's not part of our brand or part of our heritage.

“There's no point bringing a car at $130,000-odd, if you just have to discount it, because where does the brand go from there onwards? There is no value there. There's no value in discounting like that at all.

“I'm not saying the Germans do, I’m just saying there’s no value in doing that.”

It’s not just German brands slashing thousands off the price of slow-selling models either; Lotus, Jeep, Ford and Alfa Romeo have all made bold pricing moves recently to try and stir up some extra sales.

The 2026 Volvo ES90 will arrive in Aussie showrooms in the first quarter of next year in two forms: the entry-level Plus Single Motor and the more opulent Ultra Single Motor ($107,990).

Volvo has some ambitious sales goals for the coming years, with plans to reach a historic high of 12,000 annual sales by 2028.

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