Volvo Australia Adjusts Electric Vehicle Strategy

In a significant policy shift, Volvo Car Australia has announced it will continue offering petrol and hybrid-powered models beyond its previously established 2026 all-electric deadline. The decision comes as the brand reassesses consumer demand and market readiness for full electrification.

Speaking at the Australian launch of the Volvo EX90 in South Australia, Volvo Car Australia Managing Director Stephen Connor acknowledged that consumer preferences are driving this strategic adjustment.

"Our overarching strategy remains. Our ambition is to be an electric car company," Connor stated. "However, the path of getting there is being somewhat driven by consumer choice."

As a relatively small player in the Australian market with approximately one percent market share, Volvo Australia has the agility to adapt quickly to changing market conditions. The company has already demonstrated this flexibility with the imminent introduction of a refreshed XC90 featuring updated interior and exterior elements.

The Swedish marque will gradually increase EX90 production allocation as sales volumes grow, while the XC90 will continue as the primary volume driver in the luxury seven-seat segment. This recalibration comes amid shifting global strategy, with Volvo Cars now targeting 90 percent electric model mix by 2030 globally, rather than 100 percent.

This adjustment mirrors similar moves by other premium brands that had previously announced aggressive all-electric timelines. The decision coincides with Volvo's Australian electric vehicle sales comprising less than half (43 percent) of total sales by the end of 2024, with overall brand sales declining 20 percent from 11,128 units in 2023 to 8,898 units last year.

Volvo EX90 Launches in Australia

Volvo has officially launched its all-electric seven-seat EX90 SUV in Australia, with prices starting at $124,990 plus on-road costs. The model is positioned alongside the petrol and hybrid-powered XC90 in Volvo's local lineup, offering luxury family buyers a new powertrain choice.

The EX90 is available in two primary configurations: 'Plus' Twin Motor and 'Ultra' Twin Motor Performance (from $134,990 plus on-road costs). Most competitors in this segment and price range offer only five seats, including the Audi Q8 E-Tron (from $153,984), BMW iX (from $136,900), Mercedes-Benz EQE SUV (from $134,900), and Polestar 3 (from $118,420).

For buyers seeking seven seats in an electric SUV, options are limited to the more affordable Kia EV9 GT-Line at $121,000 plus on-road costs or the significantly more expensive Mercedes EQS SUV at $195,900 plus on-road costs.

The EX90 features a substantial 111kWh nickel manganese cobalt battery pack with two powertrain options: the Twin Motor delivering 300kW of power and 770Nm of torque, and the Twin Motor Performance with 380kW and 910Nm. Zero to 100km/h acceleration times are quoted at 5.9 seconds and 4.9 seconds respectively, with top speed limited to 180km/h.

Each motor is paired with a single-speed transmission, allowing for a braked towing capacity of up to 2,200kg. Range is rated at 570km for both variants, with the EX90's 800-volt electrical architecture supporting 11kW AC and 250kW DC charging. The latter enables a 10-80 percent charge in just 30 minutes.

Volvo describes the EX90 as "the safest Volvo car ever made," featuring the company's Safe Space technology. This system combines camera, radar, and lidar systems to provide a real-time, 360-degree view of surroundings, capable of detecting small objects hundreds of meters ahead to avoid potential collisions. These sensors also enhance the reliability and performance of the EX90's Pilot Assist semi-autonomous driving aids.

Interior features include Scandinavian-inspired décor with eco-friendly Nordico upholstery, a fixed glass panoramic roof, a 14.5-inch infotainment screen, and a 25-speaker Bowers & Wilkins surround sound system in the Ultra trim. The EX90 supports wireless Apple CarPlay, smartphone connectivity features for vehicle access, and integrates Google built-in technologies including Google Assistant, Google Maps, and Google Play.

"The Volvo EX90 is the first car we have made as a pure battery electric vehicle from the start," noted Volvo Cars EX90 Business Program Manager Marten Wahlstedt. "It features a new electrical architecture with a core computer that is super powerful and connected to all nodes of the car to support any node with the computational power it needs at any given time."

Nissan Expands Warrior Program Internationally

Nissan South Africa has officially launched the Navara Pro-4X Warrior, marking the first market outside Australia to offer the Premcar-enhanced model. This expansion follows a collaboration between Nissan South Africa, Nissan Australia, and Premcar, with capability enhancements specifically tailored for South Africa's unique driving conditions.

The South African Navara Pro-4X Warrior will be modified at Nissan South Africa's Rosslyn facility, with initial customer deliveries scheduled for late April. The model features several differences from its Australian counterpart, including unique spring and damper settings, Warrior-style 17-inch alloy wheels, Maxxis Razr all-terrain tires, and a bespoke front bumper.

Premcar CEO Bernie Quinn highlighted the significance of this international expansion: "The launch of the Premcar-developed Nissan Navara Pro-4X Warrior in South Africa is a major milestone for this highly successful Nissan-Premcar new-car enhancement program. We receive many overseas requests for Nissan's Warrior by Premcar model range."

Nissan Announces Product Offensive Amid Recovery Strategy

Nissan is implementing a global strategy to revitalize its brand and regain profitability, with plans to introduce a range of new electric, hybrid, and internal combustion engine vehicles over the next two years.

Among the upcoming models is a third-generation Leaf battery electric vehicle that has evolved into a family-focused crossover. Confirmed for Australian launch within the next two years, the new Leaf will utilize a more advanced BEV architecture shared with the Ariya medium SUV (arriving in Australia this year). Nissan claims significant aerodynamic improvements that will deliver substantial range increases over the previous generation.

While details remain limited, the new Leaf will feature 19-inch alloy wheels and a panoramic sunroof, with more information expected mid-year. The long-awaited Ariya, which has faced multiple delays, is scheduled to arrive within the 2025 Japanese Financial Year (ending March 31, 2026), though Australian specifications and pricing are yet to be confirmed.

Global Tariff Wars Impact Automotive Industry

United States President Donald Trump has implemented a 25 percent tariff on all vehicles and vehicle parts manufactured outside the country, effective April 3, 2025. This automotive tariff follows earlier levies on Canadian and Mexican imports introduced on March 4.

Industry experts describe this as a "major escalation" in the Trump administration's trade agenda, with potential "massive ripple effects" throughout global automotive supply chains already struggling with other new levies, retaliatory measures, and uncertainty regarding long-term trade policy.

The tariffs apply to automotive components including engines, transmissions, powertrain, and electrical components. Parts tariffs will take effect from May 3, though components complying with tariff-free trade under the United States-Mexico-Canada Agreement (USMCA) will be exempt until the Commerce Department establishes a process to apply duties only to non-US content.

President Trump stated, "What we're going to be doing is a 25 percent tariff for all cars that are not made in the United States. We start off with a 2.5 percent base, which is what we're at, and go to 25 percent. This will continue to spur growth like you've never seen before."

While the administration claims these measures aim to strengthen domestic manufacturing and incentivize production within the United States, industry analysts warn of significant consequences. Anderson Economic Group chief executive Patrick Anderson told Automotive News: "The president's remarks suggest that automobile buyers, and automobile workers, are in for a shock starting in less than a month," predicting substantial price increases and potential job losses across US vehicle production facilities.

BMW Partners with Alibaba on AI for Chinese Market

BMW and Alibaba Group have announced a partnership to produce artificial intelligence vehicles in China. This collaboration allows the German automaker to integrate AI cockpit technology from Alibaba-backed Banma for upcoming vehicles targeting the Chinese domestic market. Banma's software technology is developed in collaboration with Alibaba's Qwen.

As in other markets, software has become a critical differentiator between otherwise similar electric vehicles, especially in China where local manufacturers like BYD have established technological leadership over European competitors. Volkswagen Group, Mercedes-Benz, and BMW have all sought technology partnerships from Silicon Valley to China to remain competitive.

The partnership holds strategic importance for BMW, which considers China a major market. The company saw sales of its BMW and Mini brands fall 13 percent in China last year and anticipates continued challenges this year.

Australian Dealer Group Updates

Bunbury Subaru Wins Top Retailer Award

Subaru Australia has announced Bunbury Subaru in Western Australia as the winner of its 2024 Retailer of the Year awards. The annual recognition program identified seven national Subaru dealers demonstrating exceptional customer service, brand commitment, and outstanding business operations performance.

The 2024 regional winners included Subaru Waitara (Sydney), Orange Subaru (Eastern), Subaru Essendon (Melbourne), Traralgon Subaru (Southern), Buckby Subaru Launceston (Tasmania), Eblen Subaru Glenelg (Central), and Bunbury Subaru (Western and national).

Under the leadership of dealer principal Ryan Krikke, Bunbury Subaru claimed the prestigious national title for the second time, having previously won in 2021. The dealership has consistently been recognized as the Western Region Dealer of the Year for four consecutive years.

"It's an incredible honour to receive this recognition again," said Krikke. "Winning the National Retailer of the Year for the second time highlights our team's dedication, passion, and unwavering commitment to delivering exceptional customer service and embodying Subaru's values."

Heartland Motor Group Opens Sydney's Largest Kia Dealership

New South Wales automotive business Heartland Motor Group has launched Sydney's biggest Kia dealership with the opening of the Blacktown Kia showroom. The standalone facility, situated on a two-hectare site on Sunnyholt Road, features a 63-meter frontage with a new showroom adjacent to an existing service workshop.

Previously operating as a Holden dealership (and originally a bakery), the site began representing Kia in mid-2021. Dealer principal Lee Pitcock noted that the dealership now incorporates the latest corporate identity elements, including distinctive light beams, extensive wood panelling, and an open-plan design to showcase multiple vehicles.

Heartland is among Sydney's oldest dealer groups, with the family-owned business starting in 1966 in Boyded Parramatta. Today, it operates nine locations representing 11 brands including Kia, Hyundai, Mitsubishi, Suzuki, Jeep, MG, KGM SsangYong, JAC Motors, LDV, Chery Motors, and Mahindra.

Deloitte Reports Significant Dealer Profitability Dispersion

Deloitte's Motor Industry Services division has revealed that while the automotive industry faces challenging economic conditions reminiscent of pre-COVID times, top-performing "benchmark" dealerships continue to maintain strong profitability.

Lee Peters, head of Deloitte's Motor Industry Services, characterized the industry's approach as "pragmatic and determined," noting that benchmark dealers (the top 30 percent) are achieving around four percent bottom-line results (net profit as a percentage of sales).

In contrast, "average" dealers have fallen below two percent (1.8 percent) for the first time since before COVID, while the bottom 30 percent of dealers are struggling significantly, with many returning to loss-making positions. Peters identified three key focus areas for dealers: Performance, Loyalty, and Electrification.

The variation between average and benchmark dealers has reached unprecedented levels, making benchmarking and performance improvements critically important. Peters described 2025 as "a critical inflection point for the automotive market," noting that while the end of the COVID-driven profit surge was expected, dealerships must now focus on operational fundamentals to maintain profitability.

GWM Expands Australian Dealership Network

GWM is prioritizing dealership enhancement with plans to expand its network and create larger, more cohesive showroom facilities. In conjunction with its product expansion—adding seven new models this year—the Chinese manufacturer aims to increase its dealership network from 113 to 125 locations before December, targeting 50,000 annual sales in Australia.

GWM Australia and New Zealand head of marketing and communications Steve Maciver reported record sales of 42,782 units in 2024. "We also finished top 10 in New Zealand, which is again a strong result," he said. "But we're not resting on our laurels. We're confident there is more (sales) there, and we're working very hard to make sure that we can consolidate our position in 2025 and moving forward."

The arrival of new models, including the Cannon Alpha PHEV and all-new Haval H6 in Q2, the Haval H7 in Q3, and new Tank 500 PHEV in Q4, is expected to drive continued interest in the brand. GWM Australia and New Zealand managing director Charles Zhao emphasized the focus on building long-term partnerships and improving dealership facilities to showcase the expanding model portfolio.

"Our business in Australia is about building long-term partnerships," Zhao stated. "Over the coming two to three years, you will see a very different dealer image." John Kett, GWM Australia and New Zealand chief operating officer, noted the brand's strategic opportunity to occupy spaces vacated by other manufacturers, targeting approximately 130 dealer locations nationally to cover major metropolitan and rural centers.

Additional Industry Updates

BYD Targets 800,000 Export Sales in 2025

BYD aims to double its vehicle exports to 800,000 units by the end of 2025 while becoming more profitable than Toyota on a per-vehicle basis. BYD chair Wang Chaunfu stated the company will focus on maintaining its cost advantage by assembling vehicles in local markets with key components sourced from China, helping circumvent tariff impacts. The company is targeting markets including Latin America, South-East Asia, and the United Kingdom, while avoiding Canada and the United States due to high tariffs on Chinese electric vehicles.

Aston Martin Celebrates 60 Years of Volante

Aston Martin has marked the 60th anniversary of its Volante convertible lineage with the new Vanquish Volante, featuring a front engine, rear-wheel drive layout, fabric roof, and a twin-turbo 5.2-liter V12 engine producing 614kW and 1,000Nm. Priced from approximately $790,000 plus on-road costs, the high-performance convertible accelerates from 0-100km/h in 3.4 seconds with a maximum speed of 344km/h.

Alfa Romeo Adds All-Wheel Drive Junior SUV

Alfa Romeo is expanding its Junior small SUV lineup with an all-wheel drive mild hybrid variant. Not yet confirmed for Australia, the Junior "Q4" (Alfa's designation for all-wheel drive) will be available in Europe by mid-year, positioned as an alternative to the high-performance 207kW front-wheel-drive Veloce version. European pricing starts at €37,400 (approximately A$64,000).

VACC Responds to Federal Budget

The Victorian Automotive Chamber of Commerce has welcomed initiatives in the federal government's 2025-26 Budget, particularly strengthened franchising protections and apprenticeship support. However, VACC CEO Peter Jones expressed disappointment regarding unchanged automotive tax structures, including the Luxury Car Tax and Passenger Vehicle Tariff, and limited support for businesses transitioning to electric vehicles. The VACC continues to advocate for tax reform, EV transition infrastructure support, improved energy cost relief, and enhanced apprenticeship investment.

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This article was originally posted to the Southern Cross Dealership Report Substack and has been replicated here with permission.