Volvo has started to trouble Tesla Motors.
The Swedish multinational automobile manufacturer, Volvo, has started to trouble the American carmaker, Tesla Motors. Tesla news reported that the European company’s vehicles are proving to be more profitable than its rival’s cars. In 2014, the Scandinavian company was able to increase its sales volume by more than 8.5%.
Volvo is currently operating four manufacturing facilities in People’s Republic of China and Europe. Tesla news today informed that Volvo’s management has proclaimed to launch XC90 T8 Sports utility vehicle and invested $11,000,000,000 in that new electric powered car project. The newly launched SUV would employ a 2.0-liter four-cylinder engine. Its component has been designed to supply power through an 8 speed automatic and all-wheel drive.
Company sources have highlighted that T8 features an electric vehicle range of 15 to 20 miles. LG’s power storage devices have been used to support the car. The vehicle is quite similar to Tesla vehicles, Model X and Model S, as it serves its users with Tesla-like over-the-air updates. It is probable that these updates would improve the car’s efficiency and performance through software means.
Experts stated their view that the European automobile would increase the difficulties of its rival counterpart, as T8 would compete with its Model X. Tesla Motors news affirmed that the XC90 T8 Sports utility vehicle is being offered for $69,900, while the American vehicle is being sold for $95,000. It is expected that a large number of vehicle users would be interested in buying the new Volvo’s car, as it is offering similar features of Tesla’s at a lower price.
Market sources said that the entrance of T8 would also challenge the German automobile manufacturer Bayerische Motoren Werke AG, as its BMW i8 would also need to battle with the new product. In the current situation, the Californian business is the sole competitor of the Bavarian organization. Industry sources reported that like i8, the recently developed car also features a plugin hybrid setup. It is expected that the new automobile would lure the fans of the German company, as i8’s price is also higher than its price. The i8 is being offered for $137,450.
Industry experts stated that the new Swedish electric powered car would revolutionize the high-tech world, as it would not only lure the users of other powered automobiles but would also promote energy efficient driving. It has been anticipated that its price would also attract the owners of gasoline-fuelled cars. The management of Tesla Motors should now take steps to promote the product and compete against its rival; otherwise, it could suffer in the competitive high-tech world. The response of the Swedish users of the product would finally determine its ability to threaten the automaker.