Volvo’s sweet deal on first electric car just what SA needs

Volvo Car South Africa is taking a bold new approach to electrification with the introduction of its first fully electric vehicle (EV), the XC40 P8 Recharge, to the local market.

It’s no secret that EVs are the future of the motoring industry, but South Africa has not just embraced this concept like most of the rest of the world has over the last few years. Refusal from government to incentivise sky-high import tax and duties means that EVs are priced much too high compared to internal combustion engine vehicles (ICE) to make them a realistic option for the average buyer.

The country’s ongoing power woes due to Eskom’s irregular supply is also not helping EVs’ cause. And with predications that loadshedding is not going to go away any time soon, car manufacturers have a tough time trying to convince people to pay an excessive price for something they might not be able to use.

Sweetening the deal

But now Volvo, which is adamant on ceasing production of all ICE passenger vehicles by 2030, has come up with a unique concept which will make owning an EV a more appealing than before. Every electric XC40 will be inclusive of the full Volvo Care Package consisting of three years complimentary comprehensive insurance, two weeks’ use of a Volvo ICE vehicle per year for three years, plus a free home charger including its installation and cables.

Based on the top-specced R Design, the P8 will cost R1 200 000 and have full specification with no optional extras available. Volvo will start taking orders on Monday, with the first deliveries expected in September.

From the rear, there is little to differentiate the XC40 Recharge from the standard petrol or diesel model.

“All-electric vehicles sold in South Africa have traditionally come with hefty price tags – and this has undoubtedly been a deterrent. We know that there is an appetite in South Africa for electric cars and we were determined to give customers an attractive price,” says Greg Maruszewski, Managing Director of Volvo Cars South Africa.

The asking price of R1.2 million is still very high compared to Volvo’s ICE offerings, considering that the most expensive petrol version of the XC40 costs just under R800 000 and its flagship XC90’s pricing starts at just under R1.2m. But add together the value of all the additional extras and will make up a sizable portion of the R400 000 price difference.

Fastest horse in the stable

And even better, the XC40 P8 will be the quickest car in Volvo’s stable in terms of performance. It is claimed to reach 100km from a standstill in a mere 4.9 sec.

The Swedish brand’s quickest local offering powered solely by ICE is the XC60 T6 and S90 T6, which gets from 0 to 100 km/h in 5.9 sec, while the plug-in hybrid, the XC90 T8, is rated at 5.6 sec, the XC40 P8’s range of 418 km is also second only in the current local EV crop to the I-Pace, which Jaguar claims can cover 470 km on a single charge.

The biggest key to the XC40 Recharge resides underneath the bonnet.

Despite charging points springing up along the major centres around the country over the last few years, motorists used to the traditional failsafe option of refuelling their cars remain cautious over taking an EV on the open road. It is therefore that Volvo decided to throw a complimentary annual loan car into the deal.

Peace of mind

“Even though the P8 offers a very good range, we understand that range anxiety is a reality when it comes to EVs,” adds Maruszewski.

“Because typical holidays destinations in South Africa tend to be beyond the reach of this range, the inclusion of an ICE powered car for a two-week period every year is important in giving EV buyers peace of mind that their long-distance can be done,”

The annual loan car will be an ICE-powered XC40. The P8 is differentiated from the rest of the XC40 line-up by virtue of a solid panel in place of the front grille and the fact that it doesn’t have an exhaust.

Inside, despite the fact that the battery pack is situated under the boot floor, it features similar 460-litre luggage space to its ICE XC40 siblings, while there is also a 31-litre front storage trunk or “frunk” under the bonnet which is very handy for stowing the charging cables.

Packing a punch

The P8 uses two electric motors, one per axle, which generates a total of 304 kW of power and 660 Nm of torque which is sent to all four wheels. Like all new Volvos, its top speed is limited to 180 km/h.

Through 150kW DC fast charging, the 78 kWh battery pack can be recharged from empty to 80% in 40 minutes. The P8 will include a five-year maintenance plan and warranty, and eight year/160 000 km warranty on the battery.

XC40 Recharge’s interior showing the revised infotainment system.

The home charger, which is a Volvo product, will be installed by local installers prior to taking delivery of the car, and will also have a five-year warranty.

In the comfort of your home

In another first for Volvo Cars South Africa, the P8 can only be purchased online at myvolvo.co.za. Even if a customer prefers to order one through a dealership, the dealership will still have to buy it online. The entire process will be made up of five steps and is said to take as little as 20 minutes.

“To offer the P8 only online was a global decision from Volvo. It does not affect the ICE offerings, it’s just for the EV,” says Maruszewski.

“Feedback from customers indicate that they don’t find the buying process in a dealership enjoyable. They feel that it is intimidating, boring and inconvenient. A customer can still visit a dealership if they prefer, which will then make the online purchase for them. And regardless of how  customers buy it, the dealership will of course also be their port of call for after sales service.

“The P8 is clearly a sign of things to come. Last month the company announced that it would only manufacture electric cars by 2030, with all sales to be online. So, our future is clear, and it will be fully electric, sustainable, and online,” concludes Maruszewski.

The green brigade

Currently, there are only four EVs on offer in South Africa, the Mini Cooper SE, the BMW i3, the Jaguar I-Pace and the Porsche Taycan. Nissan decided not to sell the second generation of the all-electric Leaf after the first generation was the first ever EV to go on sale locally.

Of the four current offerings, the Mini and the i3 are significantly cheaper than the XC40, but are also smaller, while the bigger I-Pace and Taycan come at a premium. The Mini is the only one of the four that is also offered as an ICE product. The i3, the I-Pace and the Taycan were developed and designed as EVs from the ground up.

Combined, hardly a dozen of these four are sold locally every month. Here is how they line up:

Mini Cooper SE

Priced at R686 400 and offers range of 217 km.

BMW i3

Line-up starts at R754 200, which features a range of 260 to 310 km.

Jaguar I-Pace

Starts at R1 942 600 and features a range of 470 km.

Porsche Taycan

Pricing starts at R2 227 000, which includes a range of 354 to 431 km.