While many have raised concerns about the recent decline in demand for electric vehicles, Volvo Cars‘ chief executive, Jim Rowan, remains confident in the potential for “tremendous growth” in the world of EVs, especially for a premium brand like the Swedish carmaker.

While speaking at the Reuters Global Markets Forum in Davos, Switzerland, Rowan expressed his belief in solid growth for electric vehicles globally, with a particular focus on Europe.

“We have much more pricing power and people have got more disposable income so they can afford it if they want to drive an EV,” Rowan said.

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 Volvo CEO Pours Cold Water On EV Doubters, Sees ‘Tremendous Growth’

Volvo has previously stated that it will not engage in electric vehicle (EV) price wars due to the healthy profit margins it already enjoys on its EVs. Rowan also mentioned that despite disruptions in shipping routes through the Red Sea, customers will not experience any impact, and any extra costs will be covered by the company. However, it was recently confirmed that production of the XC40 and C40 at Volvo’s Ghent, Belgium plant will be temporarily halted for three days due to delays in gearbox deliveries.

Read: Volvo’s 422-HP Twin-Motor EX30 EV Priced From $46,195

Similar to numerous other car manufacturers, Volvo has ambitious plans to significantly expand its electric vehicle (EV) lineup during this decade. The company aims to have 50% of its global sales consisting of battery electric vehicles (BEVs) by the mid-2020s, and ultimately, it plans for 100% of its sales to be BEVs by 2030.

The new EX30 is expected to be the best-selling EV from Volvo. It is currently being built exclusively in China but Volvo will also start building it at its Ghent factory from 2025 to keep up with demand. It will join the XC40 Recharge and C40 Recharge as the carmaker’s third fully-electric model produced in Europe and will also be sold in the U.S., starting at a very competitive $36,245 for the entry-level model and topping out at $46,195 for the flagship.

 Volvo CEO Pours Cold Water On EV Doubters, Sees ‘Tremendous Growth’