02-07-2025
Volvo targets double-digit growth with new XC90, S90
Swedish automaker Volvo Cars vowed to sell 2,500 units of the new XC90 sport utility vehicle and S90 sedan, its flagship premium offerings, in South Korea this year, leveraging its competitive pricing strategies and advanced consumer-centric infotainment services.
'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.
