Volvo sales to be 50% subscription based by 2025

  • Shift in structure to match buying habits
  • UK to get full subscription model next year
  • Terms in UK will change too

Volvo is predicting that 50% of its global business will come via its subscription model by 2025.

MD of Volvo UK, Kristian Elvefors, says that Volvo's subscription model, Care By Volvo, will also be promoted to a fully-fledged product in the UK next year, similar to models used in Germany and the Netherlands.

Care By Volvo is only a pilot scheme in the UK at the moment. Once the UK gets a full-fat version next year, all of Volvo's cars will be added to the scheme. The minimum age of 30, will also be reduced, while other features will be added.

2019 Volvo XC90

Customers using Care By Volvo in the UK are 'in the hundreds' according to Volvo UK MD, Kristian Elvefors, but he is certain that going fully-fledged with the business model will help increase sales in the UK.

Elvefors said: 'Subscribers in the UK are just in the hundreds at the moment, but Care By Volvo in the UK is basically just a modified PCH agreement. Once we go full scale next year we expect numbers to increase.

'The concept of ownership is changing, which is why we feel 50% subscriptions will be achievable by 2025.'

The news comes on the same day that Ford America announced that it will sell its own car subscription service called Canvas, after less than three-years.

Volvo's subscription based service in the UK is called Care By Volvo. It offers most of Volvo's range for a fixed monthly cost over a fixed time period, usually two or three years. It covers all regular service and maintenance costs and provides comprehensive insurance and breakdown cover. Tyre replacement and a subscription to Volvo's connected services are also bundled in.

Next year, when the service is upgraded, users will be allowed to borrow other Volvo models for set periods of time.

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