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Volvo Car SA cuts dealerships; aims for 20% premium market share

Tarcísio Triviño

The new EX90

Inside the new EX90

1st April 2025

By: Irma Venter

Creamer Media Senior Deputy Editor

     

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Volvo Car South Africa (VCSA) is rolling out a five-year programme to “Restart” the Swedish premium brand in South Africa.

Part of this process is to whittle down its 19 Volvo Car dealerships countrywide to seven, says acting VCSA MD Tarcísio Triviño.

Appointed in the second half of last year, Triviño says he has since visited all the Volvo dealerships around the country, encountering some dealerships struggling to survive, and, thus, also, to invest to meet the evolving expectations of premium market customers.

South Africa’s premium new-car market has been struggling in recent years, along with the domestic economy.

The seven earmarked Volvo dealerships are owned by four business groups, and are located in Gauteng, the Western Cape and KwaZulu-Natal.

“It doesn’t mean we’ll remain at seven,” emphasises Triviño. (This said, the seven dealers sold more cars in January and February combined than the 19 outlets did over the same period last year.)

“We are here to stay – we are launching five new vehicles in 2025,” adds Triviño.

The new models VCSA will introduce this year include the brand-new EX90, the EX30 Cross Country, the ES90, and facelifts for the XC60 and XC90.

While Triviño expects only a marginal sales increase this year, VCSA aims to add 1 000 new-car sales a year to its tally, until it reaches 20% premium segment market share or, roughly 6 000 to 7 000 unit sales in 2030.

VCSA’s current premium market share is 6%.

VCSA sold 539 battery electric vehicles in South Africa in 2024, outselling its nearest competitor by 20.86% to take the crown as the country’s best-selling electric-car brand.

This is important as, by 2030, the global Volvo car group aims for 90% to 100% of its sales to consist of electrified vehicles – a term which includes hybrids.

This means the days of pure Volvo diesel and petrol cars will soon be numbered.

Triviño says Volvo’s historic market in South Africa – about 20 years ago – was around 5 000 cars a year.

“So, the potential is there. There is growth involved [in our target], yes, but it is more related to Volvo’s natural capacity to sell premium cars – to deliver the whole package.

“I’m confident the fair share for our brand is 20%.”

With March’s launch of the EX90, VCSA taps into the top-end of the premium market, with the price tag of the seven-seater vehicle – Volvo’s safest vehicle yet – a cool R2.65-million.

This flagship vehicle sports a 111 kWh battery with a range of 627 km.

When plugged into a 250 kW DC fast charger, the vehicle can charge from 10% to 80% in around 30 minutes.

In performance mode, the EX90 accelerates from zero to 100 km/h in 4.9 seconds.

Sold as standard, the vehicle’s four-corner air suspension irons out bumps and road imperfections.

Inside, the vehicle offers a fixed panoramic glass sunroof, massaging front seats, a heated steering wheel and heated rear seats.

Technology includes a 14.5-inch centre display with Google built-in and a 25-speaker Bowers & Wilkins High Fidelity audio system, as well as an array of safety systems, such as several airbags.

The vehicle is also equipped with LiDAR, cameras and radar for enhanced safety.

These systems scan the road up to 250 m ahead, detecting potential hazards and improving crash avoidance by 9%, says the Swedish car maker.

 

 

Edited by Creamer Media Reporter

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