Kiwis ordering plug-ins before test drive – Volvo

This story first appeared in the May issue of EVTalk – CLICK HERE to download the magazine FREE

In a time when nobody waits for anything, eager Kiwis pre-purchased the world’s first seven-seater hybrid SUV – without a test drive and knowing it was a year away – just to secure a vehicle.

Volvo New Zealand is preparing to launch the XC90 plug-in hybrid, and say they have plans to increase the number of electric vehicles available to Kiwis in line with the brand’s global plan to sell a million electrified cars by 2025.

The Swedish company will offer at least two hybrid versions of every model in its range and has scheduled the release its first all-electric car for 2019.

Volvo NZ national manager Coby Duggan says this electric vehicle strategy, from the New Zealand perspective, will begin with the introduction of the world’s first seven-seat hybrid SUV this month.

“Kiwis are early adopters, and we have seen the huge interest in our XC90 T8 twin engine plug-in hybrid,” says Duggan. “We think this car will account for more than 10% of XC90 volume in 2016, and this engine will have an important role to play across the range in the years ahead – with the next iteration being the S90 T8 sedan in 2017.

“Kiwis have a growing appetite for the new technology with many of our customers having waited up to a year for their vehicles to arrive, Most were pre-sold well in advance, and we have some customers on waiting lists which are still up to six months long,” he says.

How many?

In an interview with Auto Media Group, Duggan says they have sold all they can get their hands on.

“Our production allocation out of model year 2016 is 11,” he explains. “We kept one for ourselves.”

He says the first cars are being delivered now, on orders placed a year ago.

“The reality is that we’ll be hindered by a lack of supply.”

In the long term, he expects T8 volume to exceed that of the 20% share being predicted internationally.

“I think we will end up somewhere in the 20% range,” Duggan says. “If we could get all the cars we wanted, potentially it could be in the 40%.

And he notes all the existing orders have come without a demonstrator at dealers.

The pricing differential is relatively small in the context of the kind of vehicle – $134,900 versus $110,900 for a T6 model – and the T8 has a higher specification.

The T8 heads a range of Volvo plug-in options that are set to grow.

“It is still early days, but the factory says that there will be a plug-in version of everything downstream.”

The plan is assisted by the company effectively having only two flexible platforms, and one core engine, its Drive-e engine, in both petrol and diesel forms.

“There will be a T8 of many more models downstream, and then a pure electric vehicle – the factory is talking 2019 internationally.”

Duggan says they have put their hand up for plug-ins, and the pure electric, but it is hard to say what the mix will be until more details are confirmed.

Little is known about the electric vehicle yet, but Duggan believes it will be in the S40 or S60 size range.

Does he believe government incentives are required to sell plug-in vehicles?

“Customer motivation around T8 purchases hasn’t been financially motivated – it has been customers looking ahead of the curve, being early adopters, and they are genuinely impressed by the performance of the T8 in broad terms.

“I’m not convinced that a government subsidy would have any impact at all, but I think downstream, as we see more and more options made available to the market across segments and across brands, I think they’ll become more topical.”

Government plug-ins?

An always controversial fleet deal in New Zealand is the government’s VIP fleet. And EVs for politicians have long been called for by those on the ‘greener’ side of the house.

While the BMWs currently in use score big on environmental credentials, it is likely something with a plug will also score well in the process.

By then Volvo may be able to dip into the corporate fleet with a plug-in S90 sedan.

“I think it would certainly be on our radar,” says Duggan, noting even if the T8 was not on the table, the T6 would also be a potential offering.