Volvo Cars Korea’s Bold Move: Slashing Prices by 50 Million Won to Target No.1 in the Electric Vehicle Market

ES90 Launched at Up to 50 Million Won Below Major Global Markets
Lowering the Premium EV Entry Barrier to Lead the Market
Equipped with 800V Battery System... 300km Range in Just 10 Minutes of Charging
Up to 706km WLTP Driving Range on a Single Charge

Volvo Cars Korea has made a bold move by launching its next-generation all-electric flagship sedan, the ES90, in Korea at a price up to 50 million won lower than in major global markets. Despite worsened profitability caused by exchange rate fluctuations, the company opted for an aggressive pricing strategy based on the judgment that the Korean market will serve as a core hub for its electrification strategy. Volvo Cars Korea also announced its goal to become the number one premium electric vehicle brand in Korea by 2027, with the ES90 at the forefront.

On July 22, Volvo Cars Korea held a launch event for the ES90 at the Grand Hyatt Seoul and announced the start of domestic sales. The starting price is 72.94 million won. Compared to major global markets, this is up to 50 million won lower, and over 10 million won less expensive than the previous S90 plug-in hybrid (PHEV) model.

At the ES90 launch event held on the 22nd at the Grand Hyatt Seoul, Oscar Bertilsson, Head of Volvo Cars 90 Lineup and Global Sales (left), and Yoonmo Lee, CEO of Volvo Cars Korea, are taking a commemorative photo. Photo by Lee Seungjin

Yoonmo Lee, CEO of Volvo Cars Korea, stated, "Korea offers the lowest price compared to any country in Europe," adding, "We decided on aggressive pricing not only based on the importance and growth potential of the Korean market, but also after considering the strategic impact ES90's success would have in the global market."

This pricing policy was implemented despite the deterioration in profitability.

During a Q&A session with reporters, CEO Lee said, "In the first half of this year, the value of the Korean won dropped by about 16%, which in effect wiped out that portion of our profit margin," and added, "Volvo Cars Korea is currently operating in a negative margin situation." He explained, "Through multiple rounds of persuasion and discussions with our headquarters, we secured the most competitive pricing even while taking a loss, because we are confident the ES90 will become a leading model in the premium electric vehicle market."

Volvo sees the ES90 not just as a new model, but as a key player in advancing its electrification strategy. The company plans to sell over 1,000 units this year and over 3,000 units in 2027, aiming to make it the best-selling model in the domestic E-segment electric sedan market. Furthermore, Volvo Cars Korea has outlined a blueprint to expand its annual electric vehicle sales to more than 10,000 units, aspiring to become the number one premium electric vehicle brand in Korea.

The market response has exceeded expectations. Since March, pre-orders for the large electric SUV EX90 surpassed 1,000 units, with customer deliveries set to begin next month. Similarly, pre-orders for the ES90 exceeded 1,000 units within a month, even before pricing and detailed specifications were released. Delivery of the ES90 to customers in Korea is scheduled for October.

In Korea, the ES90 will be available with three powertrains—Single Motor Extended Range, Twin Motor, and Twin Motor Performance—and will be offered in Plus and Ultra trims. The prices are as follows: Single Motor Extended Range Plus at 72.94 million won, Single Motor Extended Range Ultra at 80.55 million won, Twin Motor Plus at 79.60 million won, Twin Motor Ultra at 87.41 million won, and Twin Motor Performance Ultra at 95.41 million won.

Volvo ES90. Volvo Cars Korea

The ES90 is a model that emphasizes interior space utilization and software competitiveness, surpassing the limitations of conventional sedans. With an overall length of 5 meters and a wheelbase of 3,102 mm, it offers best-in-class interior space. The ground clearance is about 20% higher than typical sedans, providing an SUV-like viewpoint. Cargo capacity is up to 1,445 liters, about three times that of a regular sedan.

The vehicle is equipped with the next-generation 800V electric vehicle platform. When connected to a 350kW ultra-fast charger, the battery can charge from 10% to 80% in approximately 22 minutes and can reach up to 300 km of range with just 10 minutes of charging. Its maximum driving range on a single charge is 706 km based on the WLTP standard.

The battery is supplied by China's CATL. Regarding this, Mansik Lee, Executive Vice President at Volvo Cars Korea, stated, "Volvo is open to collaboration with all battery manufacturers," and added, "We select the brand that best matches vehicle requirements and delivers optimal performance." He continued, "We have partners such as LG, and there is a possibility of using Korean batteries in the near future." The ES90 being launched this time is equipped with the same battery worldwide, all of which are produced in China.

Volvo's main differentiating factor is its software. The ES90 is equipped with the next-generation computing platform 'Hugin Core,' developed in collaboration with companies such as Nvidia and Qualcomm. Based on billions of real-road data points, this software-defined vehicle (SDV) improves safety and driving performance over time through OTA (over-the-air) software updates.

Oscar Bertilson, Head of the 90 Lineup and Global Sales (COO) at Volvo Cars, commented, "Hugin Core is Volvo's independently developed next-generation platform that comprehensively controls safety, battery, and driving systems." He added, "ADAS and autonomous driving features will also become increasingly advanced through continuous software updates."

He repeatedly emphasized the strategic importance of the Korean market. Bertilson stated, "Korea is the most dynamically changing market and the fastest adopter of advanced technologies among the 150 or so countries where Volvo operates," and added, "As Korea is the world's second-largest market for S90 sales, we will continue to introduce highly competitive electric vehicles to the Korean market moving forward."

There was also an explanation regarding the battery recall. A recall is currently underway due to repeated fires caused by battery defects in Volvo's compact electric vehicle EX30.

Executive Vice President Lee explained, "451 units are subject to recall in Korea, with approximately 85% of replacements completed as of now, and we plan to finish all work by the end of August," adding, "Korea is proceeding with the recall faster than any other country in the world."

This content was produced with the assistance of AI translation services.