Image credits: Volvo Cars
News Article

Volvo Cars to Launch Vehicle-Subscription Plans

By Alejandro Enríquez | Tue, 04/27/2021 - 11:54

Volvo Cars has focused strongly on mobility and recently announced its ambitious plan to launch an online subscription platform so customers can choose a Volvo on-demand, reports Dinero en Imagen. The plan includes renting the vehicle for a day, a week or for a special occasion "Netflix style." The company already operates this model in other countries that could soon arrive to Mexico.

"We are shifting from a vehicle ownership culture. We are entering into the 'car as a service' model. We are testing this model in some countries since younger generations are more interested in the car as a service to satisfy a need that can be daily, monthly or just occasional," Raymundo Cavazos, Director General Volvo Cars México, said to Excélsior.

During Mexico Automotive Summit 2021, Cavazos argued that "ownership relevance is changing as Mexicans are now realizing they just need the service. As consumers change, mobility providers are forced to change alongside them. We have to evolve as the sector needs to change,” he said. Volvo Cars offers more than just vehicles to provide mobility services, it also provides “ecobicis.” According to Cavazos, younger generations prefer these schemes as they pay only for what they are using.

Volvo Cars has also bet strongly on autonomous vehicles. Just recently, the company announced a partnership with DiDi to advance autonomous driving where Volvo Cars will provide XC90 models for the Chinese ride-hailing app self-driving test fleet while integrating additional software and hardware. Cavazos confirms the brand's bet. "Self-driving vehicles grabs the spotlight easily. When we asked young people what they like the most about a vehicle, everyone responded that they love electric vehicles that drive themselves and that have high levels of infotainment and connectivity. In Volvo Cars we are already investing on that," he said to IMAGEN. According to Cavazos company is also investing on eSports, a high-growing industry that is also growing in Mexico.

The brand has also bet strongly on electrification. At the global level, the company has announced that it will become fully electric by 2030 and by 2025 half of its vehicle portfolio will be electric and another part hybrid. According to Cavazos, the company will launch its first fully electric vehicle with the XC40 SUV in Mexico. At the moment, Volvo offers all of its vehicle lineup in Mexico both in ICE and hybrid (Recharge) versions.

The data used in this article was sourced from:  
Dinero en Imagen
Photo by:   Volvo Cars
Alejandro Enríquez Alejandro Enríquez Journalist and Industry Analyst