For the first time in its nearly century-long history, Swedish car maker Volvo is turning its attention towards Generation Z or Gen Z – the youngest generation of car buyers – with the launch of a smaller-sized electric SUV. Until now, the brand has been associated with older, more mature consumers.
Jim Rowan’s Vision
Volvo CEO, Jim Rowan, made these intentions clear in a recent event, outlining an innovative strategy intended to appeal to younger drivers. A smaller-sized SUV, suited for city driving and appealing to first-time buyers, is central to this approach.
Rowan emphasised that they’re not merely introducing a new vehicle, but a new ownership model. Volvo aims to lure younger consumers by offering online buying and short-term, subscription-based ownership. This model would allow customers to sign up for a renewable three-month contract instead of a long-term commitment.
The Promise of a Long-Term Relationship
Rowan’s concept is to nurture a direct relationship with Gen Z consumers from an early age, retaining them as they progress through life’s milestones, such as starting a family, and their vehicle needs evolve.
He likens this relationship to the one people have with their smartphones — they stick with the brand they trust and appreciate for its value and seamless service, making a switch to another brand seem inconvenient.
The Mysterious New Electric SUV
At present, specific details on the new compact electric SUV that would initiate this paradigm shift are scarce. Volvo maintains a veil of secrecy around this new model, projected for a 2023 launch.
However, with a bit of educated conjecture and factoring in the size, style, and the powertrain, speculation points towards the model being called the Volvo EX40. This naming convention would be aligned with Volvo’s established range, but for now, it remains conjecture.
The shift in Volvo’s marketing strategy, along with its introduction of a new electric car aimed at young, urban drivers, piques considerable interest in what the future holds for the brand and the overall electric vehicle landscape. The months leading up to the official launch in 2023 are set to be engaging as Volvo draws back the curtain on its latest innovation
