STOCKHOLM -- Volvo Cars said it saw no need to cut prices despite reporting a fall in first-quarter operating earnings because there is healthy demand for its vehicles.
Operating earnings fell to 5.1 billion Swedish crowns ($494.63 million) in the quarter from a year-ago 6 billion crowns, the Swedish automaker said on Thursday.
While Tesla has launched a price war to spur demand and fend off rising competition, Volvo CEO Jim Rowan said that as long as demand continues to be high for the automaker, he saw no reason to cut its EV prices.
Full-electric vehicles accounted for 11 percent of Volvo's retail sales last year.
Volvo has just launched EX90 crossover, its battery-electric flagship model.