Volvo targets Gen Z with budget-priced electric crossover

MILAN, Italy — Volvo Cars aspires to deliver 1.2 million vehicles globally by mid-decade, nearly double last year's volume. To get there, the Swedish automaker is betting big on a small new electric model aimed at younger buyers.

The Chinese-made EX30 compact crossover is the most affordable, fastest accelerating and greenest Volvo yet.

Volvo's mini model has a sticker price to match, suggesting that their battery-electric vehicles might reach price parity with their combustion engine counterparts sooner than many expect.

The 2025 Volvo EX30 starts at $36,145, including shipping, and arrives in the U.S. next summer. The sub-$35,000 sticker price is even more remarkable because the vehicle is subject to a hefty 27.5 percent U.S. tariff on models built in China.

Dealer Kevin Flanagan described the EX30 as "the people's car."

"This is a premium vehicle that's appealing in price to a lot more of the market segment than has been up to this point," said Flanagan, president of Smythe Volvo in Summit, N.J.

Flanagan foresees the EX30 accounting for nearly 10 percent of total Volvo U.S. sales in its first full year of production.

"You'll probably see first-year production presold before the car even hits the ground," he said.

With its budget price, the EX30 is aimed at the millennial and Gen Z market, which premium automakers have mostly ignored. Tesla and Mercedes have compact electric crossovers but they are larger and pricier.

The EX30 "has the potential to really take off, as it's going to basically own its segment for the foreseeable future," Volvo Car USA CEO Michael Cottone told Automotive News.

Cottone said more than 80 percent of people who signed up to receive updates on the EX30 are new to Volvo.

Broadening the brand's appeal will lift sales across Volvo's sedans and crossover lineup.

"If you can marry a consumer to the brand, you can move [them] up the brand according to size," said Ernie Norcross, owner of Volvo Cars Memphis in Tennessee.

Volvo focused on centralization in the new nameplate's design and engineering to get to the lower price point.

The EX30 sits atop the Sustainable Experience Architecture (SEA) platform, which underpins vehicles from other Geely group brands.

Francesco Speciale, who oversees the EX30's market strategy, said using that platform "across many more cars enables a cost efficiency for EX30."

An aero design, meanwhile, allows for a smaller, less expensive battery without compromising the EX30's driving range. A low hood and air curtains up front combined with a roof drop in the rear reduce drag and boost energy efficiency.

A 69-kilowatt-hour battery delivers 275 miles in the single-motor version and 265 miles in a dual-motor performance variant. The EX30 battery can charge to 80 percent from 10 percent in 26.5 minutes.

Volvo will offer two battery types with different chemistries — the cost-efficient lithium iron phosphate (LFP) and a higher energy-dense Nickel manganese cobalt (NMC).

The LFP battery, available on the single-motor EX30 and not slated for the U.S., delivers up to 200 miles based on an EPA estimate.

The NMC battery, available on both single and twin-motor variants, has a range of up to 275 miles, also based on an  EPA estimate.

Next year, Volvo will bring more rugged looks to the EX30 with a Cross Country variant, tricked out with skidplates, black panels on the front bumper and trunk lid, and a small, hood-mounted Swedish flag.

The EX30 Cross Country "will probably find its best market in the U.S.," Flanagan said. "It hits the market sweet spot and is a competitive differentiator."

But Volvo's mission to design and engineer the EX30 to minimize cost did not mean sacrificing premium status.

"We've prioritized what's important for the brand," said Akhil Krishnan, head of Volvo's small car programs. "Instead of taking cost away from the interactive surfaces and materials, we've taken cost away from electronics and technology by making them simpler and more efficient."

Volvo consolidated the front door speakers into a sound bar underneath the windshield and moved the window switches to the center console. That boosted door storage capacity and trimmed manufacturing cost and complexity.

Following Tesla's lead, Volvo also ditched the instrument cluster. It moved critical driving information, such as speed and range levels, to a 12.3-inch infotainment display running the vehicle's Google-services Android Automotive operating system.

"We have centralized a lot of elements that would normally drive cost in a higher-segment car," Speciale said.

The center console maximizes versatility with a sliding system to accommodate different-size items, such as a handbag or smartphone.

The design team was "super efficient in how they carved out little cavities around the car to create more usable storage space," Flanagan said. "The EX30 has a lot of smart space."

Volvo wanted the EX30 to build on its two brand pillars — safety and sustainability.

The crossover debuts Volvo's next-generation parking assist technology to take the hassle out of parallel parking and maneuvering into tight spots.

The EX30 uses sensors to keep its occupants and those around it safe. A safety system warns via visual and audio cues if the driver or passenger is about to open the door in front of a passing cyclist or pedestrian.

The EX30's diminutive footprint extends beyond its 104.3-inch wheelbase.

The vehicle has a 25 percent lower carbon footprint than Volvo's XC40 and C40 electric crossovers.

Volvo said about a quarter of the model's aluminum and about 17 percent of its steel and plastic are recycled.