Volvo targets double-digit growth with new XC90, S90
'The first half of this year was extremely challenging for us, aggravated by Tesla's aggressive pricing (in Korea), resulting in a 5 percent drop in sales as of June from the previous year,' said Volvo Cars Korea CEO Lee Yun-mo, during a press conference held Wednesday in Seoul. 'However, we anticipate double-digit growth this year, led by the XC90 and S90. Our goal is to sell 2,500 units of these models and close the year with approximately 16,000 units in total sales.'
Lee stressed that the XC90, praised for being one of the safest luxury family cars, has already received over 1,300 preorders, surpassing the allocated sales volume for the July–December period. The Korean unit plans to secure more than 200 vehicles from Volvo. For the S90, the company is considering increasing its sales target to 1,200 units from the originally planned 1,000 units, as it is gaining positive consumer feedback.
Along with the S90 sedan, the SUV is two of the most well-received models in Korea, accounting for 25 percent of domestic sales last year.
To boost sales of the XC90, a 7-seater SUV, Volvo Cars Korea negotiated the lowest price of won ($99.9 million) for the vehicle with the Swedish headquarters despite pressures of a drop in sales margins due to the increase in exchange rates. The same model is sold at $107.3 million and $143.9 million in the US and the UK, respectively.
'In the same segment, the XC90 stands out as the only car priced under 100 million won, despite including the costly air suspension feature as a standard offering,' noted Lee. The air suspension, integrating with active chassis technology, continuously monitors driving conditions in real-time, optimizing both vehicle height and damping to ensure smooth and stable driving.
According to Kim Jung-su, head of the APAC R&D ConX at Volvo, Volvo is the first among foreign car brands to collaborate with Naver Whale in Korea, offering an enhanced user experience for its infotainment system in the XC90 and S90. Scheduled to launch in the fourth quarter, the Whale browser will offer a tablet-like experience, allowing access to a wide range of applications, including OTT, SNS, search portals and music.
Notably, the company invested more than 7 billion won to provide free upgrades to include Naver Whale through Over The Air updates for approximately 60,000 customers who purchased Volvo cars in Korea from 2021.
Another noticeable upgrade for the two models is the enhanced connectivity through the new Volvo Car UX, developed with TMAP Mobility exclusively for the Korean market, Kim said.
Powered by Qualcomm's next-generation Snapdragon Cockpit Platform, it is approximately twice as responsive and offers ten times faster graphics generation than its predecessor, reducing driver distraction by intuitively displaying information such as navigation and calls. The 11.2-inch center display also offers 21 percent improved pixel density for greater clarity and convenience.
In addition to the XC90 and S90, and the EX30, which launched in March, Volvo Cars Korea plans to roll out the XC60 SUV and ES30 Cross Country in the second half of this year. For 2026, the company will debut the new ES90 and EX60, introducing a full electric vehicle lineup across all segments at Volvo Cars.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Korea Herald
2 hours ago
- Korea Herald
Industry minister ends 2-day tariff talks with Lutnick without results
South Korean Industry Minister Kim Jung-kwan has wrapped up his two-day tariff talks with US Commerce Secretary Howard Lutnick, without tangible results, sources said Saturday. Kim and Lutnick's second-day meeting, which took place at Lutnick's residence in New York, finished late Friday night (US time) without solid results, according to the sources familiar with the matter. The two had also met the previous day in Washington to discuss pending trade issues, including tariffs, non-tariff measures and industrial cooperation. In Friday's meeting, Kim is said to have presented a revised proposal to narrow their differences on contentious items, including the $100 billion investment plan by Korean companies in the US and what Washington calls "trade barriers" on beef and rice imports by Seoul. The Donald Trump administration has reportedly been pressuring Korea to lift its import ban on American beef from cattle aged 30 months or older and expand rice imports from the US. However, the advanced proposal appears to have fallen short of satisfying Lutnick, as the sources indicated South Korea needs further "internal discussions" based on the results of this week's negotiations. The presidential office is reportedly planning to hold another trade strategy meeting later in the day to discuss the next steps toward securing a tariff deal with the US, following a similar session held the previous day. South Korea faces added pressure in the negotiations as Japan, one of its major export competitors, recently concluded a trade deal with Washington that lowered reciprocal tariffs to 15 percent in exchange for further opening of its markets to American automobiles and agricultural products, along with a $550 billion investment pledge. The Trump administration has warned Korea will be subject to a 25 percent reciprocal tariff unless it reaches a deal before Aug. 1. Meanwhile, Kim also met with US Energy Secretary Chris Wright and Interior Secretary Doug Burgum, who doubles as chairman of the National Energy Council, this week to discuss strengthening cooperation in areas such as liquefied natural gas, energy security and critical minerals, according to his office. Trade Minister Yeo Han-koo also held separate meetings with US Trade Representative Jamieson Greer and Texas Gov. Greg Abbott in a bid to make progress in trade negotiations. (Yonhap)
Korea Herald
15 hours ago
- Korea Herald
US delays crucial ‘2+2' trade meeting with Korea
Seoul weighs $100 billion US investment from top chaebol groups to avert looming tariffs A high-level trade meeting between South Korea and the US was abruptly called off Thursday, just one day before it was set to take place in Washington, due to US Treasury Secretary Scott Bessent's "urgent schedule." The delay has sparked concerns in Seoul as next week's tariff deadline approaches with insufficient time for a potential breakthrough. South Korea's Deputy Prime Minister and Finance Minister Koo Yoon-cheol was set to depart for Washington when the US notified Seoul of the last-minute decision. Koo canceled the trip after receiving the notice while waiting at Incheon International Airport, just an hour before his scheduled flight. The now-delayed '2+2" dialogue was to take place between Koo and Trade Minister Yeo Han-koo from Korea, as well as Bessent and US Trade Representative Jamieson Greer from the US. It would have marked the first such meeting under President Lee Jae Myung's new Cabinet. The high-stakes talks were seen in Seoul as a critical opportunity to make a breakthrough in trade talks before the Aug. 1 deadline, when a 25 percent 'reciprocal tariff' will be imposed on all Korean goods unless a new deal is reached. "Washington has apologized multiple times for postponing the meeting and proposed rescheduling the meeting between Bessent and Koo as soon as possible," Seoul's Finance Ministry said. While the US did not clarify the nature of Bessent's scheduling conflict, reports say he may accompany US President Donald Trump's trip to Scotland on July 25-29. This means it could be virtually impossible to reschedule the '2+2' meeting before the tariff deadline, further dimming hopes of a negotiated resolution in time. Despite the disruption, Yeo and Industry Minister Kim Jung-kwan, who are already in Washington, will continue consultations with their US counterparts, including Greer, Secretary of Commerce Howard Lutnick and Secretary of Interior Doug Burgum, according to the Industry Ministry. South Korea has been pushing for reduced tariff rates or exemptions through a comprehensive deal covering both tariffs and broader economic cooperation. Korean exports currently face a 10 percent base tariff with additional levies imposed on key products, such as 25 percent tariffs on automobiles and auto parts, and 50 percent on steel and aluminum. Without a meaningful advancement in negotiations, this baseline tariff is scheduled to increase to 25 percent on Aug. 1, intensifying economic strain on the export-dependent country. Further adding to the pressure, Japan struck a deal with the US on Wednesday. The latter agreed to lower its tariff rate against Japan from 25 percent to 15 percent in exchange for a whopping $550 billion investment in the US and a difficult concession to open its market for more American automobiles and rice. Observers say Japan's deal could serve as a benchmark for South Korea in its own negotiations, as the two countries share similar trade dynamics with the US: both run comparable trade deficits and rely heavily on the US market for key exports, such as automobiles, semiconductors and electronics. Like Japan, South Korea is considering an investment package exceeding $100 billion with participation from the country's major conglomerates, including Samsung, SK, Hyundai Motor and LG, according to industry sources. The figure is expected to grow as additional corporate and government contributions are finalized. Seoul had planned to propose a $100 billion package during the now-postponed talks. President Lee was scheduled to meet with Samsung Electronics Chair Lee Jae-yong on Thursday afternoon, according to local media reports, with discussions expected to focus on the US investment and tariffs. Lee has held similar one-on-one meetings since last week, seeing Hyundai Motor Chair Chung Euisun on July 14, LG Group Chair Koo Kwang-mo on July 15, Hanwha Group Vice Chair Kim Dong-kwan on Tuesday and SK Group Chair Chey Tae-won on Wednesday. Meanwhile, National Security Adviser Wi Sung-lac sought to dispel speculation that he was unable to have a face-to-face meeting with US Secretary of State Marco Rubio during his visit to Washington. Wi explained that Rubio was urgently summoned by Trump, and was unable to meet as the meeting ran longer than expected. Wi said that "sufficient coordination had taken place via phone call" with Rubio, and that they had agreed to have an additional consultation, with the specific time and method to be arranged through working-level coordination. "The report that the US side refused the meeting, resulting in the cancellation of the talks, is inaccurate. Such misinformation not only undermines the reputations of the individuals involved, including Wi and Rubio, but could also negatively impact the trust between Korea and the US in the middle of sensitive communication," Wi said in a written statement.
Korea Herald
21 hours ago
- Korea Herald
Lee to dispatch special envoys to Poland, Vietnam, Australia, Germany
President Lee Jae Myung will dispatch special envoys to Poland, Vietnam, Australia and Germany to deliver personal letters and discuss ways to expand bilateral cooperation, the presidential office said Friday. The envoys will depart consecutively starting Sunday and will meet with key officials in each country to convey Lee's message and explore opportunities to enhance friendly and cooperative ties, according to presidential spokesperson Kang Yu-jung. The delegation to Poland, comprised of Reps. Park Jie-won, Eeo Ki-kyu and Jin Sun-mee of the ruling Democratic Party, will leave on Sunday for a five-day visit. During their stay, they plan to meet with government and parliamentary officials to review the growing defense industry cooperation between the two nations and discuss ways to further develop their strategic partnership, Kang said. The Vietnam delegation will be led by former lawmaker Lee In-ki and include two additional DP lawmakers and will depart on Monday. The group will deliver Seoul's commitment to strengthening the comprehensive strategic partnership between the countries and will hold wide-ranging discussions on expanding practical cooperation particularly in infrastructure and energy. Former National Assembly Speaker Kim Jin-pyo will lead the Australian delegation, which is scheduled to leave on Monday for a four-day trip. The delegation will engage with Australian officials to discuss defense and defense industry ties, trade and supply chains and energy cooperation. The delegation to Germany will be headed by Lee Seog-yeon, a former minister of government legislation, and will depart on Wednesday. They plan to meet with German government officials to explore deeper cooperation in key sectors, such as manufacturing, digital transformation and artificial intelligence, as well as to exchange views on regional and global affairs. (Yonhap)
