Volvo sells 20 percent of its cars in China, so the market is a lucrative one - and the Chinese government recently announced incentives for makers of low- and zero-emission cars.
Volvo's new electric performance brand has announced pricing for its first model.
More than that, China is Volvo's largest individual market, accounting for over 100,000 units of the vehicles sold a year ago.
At present, Volvo produces the S90 and S90L T8 twin engine in China, with this week seeing the start of production of the XC60 T8 twin engine as well.
"Last year we made a commitment to electrification in preparation for an era beyond the internal combustion engine", said Håkan Samuelsson, Volvo CEO. Every new Volvo will be offered with a mild hybrid, hybrid or battery-electric powertrain option. The price tag was revealed today at the Beijing Motor Show, where the vehicle was shown for the first time in China, Dagens Industri reports.
From the Beijing Motor Show comes word of pricing for the forthcoming Polestar 1 plug-in hybrid, but there's more confusion on the question of whether the high-end coupe can truly be purchased, as opposed to being obtained exclusively through a subscription model. Volvo expects this trend to continue as China has a growing middle-class and the country's "growth trends [are] driven by domestic consumption". The model is expected to be launched next year but Volvo has been tight-lipped about specifics.
China is Volvo Cars' largest individual market and this year delivered a 23.3 per cent first quarter sales increase, contributing to the company's first-quarter global sales growth of 14 per cent. Volvo auto sales in China last year passed 100,000 units for the first time. A fully-electric version of the XC40 is on the way and due to be launched in 2019.
Volvo wants to reinvent itself as a premium electric vehicle maker with its new high performance brand Polestar.