Volvo unveils its sixth electric car model

March 06, 2025

From the newsletter

Swedish carmaker Volvo Car Group has opened orders in selected markets for its fully electric ES90 ahead of launch “in the next few weeks”. Targeting luxury buyers, it is the sixth EV model in Volvo’s line-up, joining the EX90, EM90, EX40, EC40 and EX30. Volvo’s EVs are the best-selling in South Africa, one of the largest EV markets in Africa.  

  • Volvo has seen significant increases in both fully-electric and plug-in hybrid sales globally. Its fully-electric models, which include sedans, fastbacks and SUVs, are proving especially popular. The carmaker is expanding its lineup of EVs to cater to a more diverse user-base.

  • The company has seen significant success with its EV sales in South Africa, especially with the Volvo EX30. The carmaker sold 539 EVs in South Africa in 2024, about 42% of the 1,257 EVs that were sold in the country in that period. Its vehicles are also available in other African countries.

More details

  • The new Volvo ES90 is powered by 800-volt technology (the others use a 400V system), meaning it goes further and charges faster than any electric Volvo before. The ES90 can add up to 300 km of range in just 10 minutes of charging and offers a driving range of up to 700 km.

  • The new car is available for order now in 17 countries in Europe. The carmaker has announced that other markets such as the US, Africa, Asia, South America and the Middle East will be able to order the car later in 2025 and 2026.

  • When it finally arrives in Africa, the Volvo ES90’s biggest market will likely be South Africa, where the company is the best-selling EV manufacturer. While Volvo is a leader in South Africa’s electric passenger vehicles, it is also a formidable force in the electric trucks segment. Volvo Trucks launched its electric truck range in the country in June 2023. The range includes the Volvo FH, Volvo FM, and Volvo FMX.

  • Volvo also has a presence in Egypt, which is planning to expand the scope of its cooperation with the Swedish carmaker for local manufacture of EVs. Volvo in 2023 signed an agreement with Egyptian bus maker MCV to produce e-buses for export to Europe. About 50% of the bus components are manufactured locally as part of the deal. 

  • Global carmakers are increasing production of luxury EVs from which they squeeze higher margins compared to budget cars. Africa has emerged as a promising market for the sale of these premium EVs. They include the Macan 4 Electric, Cadillac Escalade IQ Luxury, BMW i7 xDrive60i M Sport, Audi Q8 e-tron, Hummer GMC EV 3x, Zeekr 001 and Rox 01. 

  • Despite this, EV sales volumes in Africa are still modest, but growing fast. Demand is highest at the lower end of the market, where companies like BYD, the world’s largest EV manufacturer, are dominating with new models that cost as low as $10,000. But as the world’s poorest continent, demand for luxury EVs is likely to increase at a snail’s pace. 

Our take

  • While SUVs are leading the charge in the EVs market, electric sedans are still a significant focus for carmakers, particularly in the luxury segment. Manufacturers will likely continue to develop high-performance electric sedans with advanced technology and long-range capabilities to serve this segment.

  • In a number of African countries, particularly in urban areas, there's a growing middle and upper class with increased disposable income. While not big in scale when you compare it to other continents, this demographic is more likely to consider luxury EVs.

  • In the long term, technology will be a key selling point for EVs. For instance, the Volvo ES90 is powered by a dual NVIDIA DRIVE AGX Orin configuration which raises the car’s core computing power. In China, carmakers are incorporating Deepseek AI into their vehicles to increase their appeal.