Volvo’s new car subscription service will account for a fifth of its volume in five years’ time, boss Håkan Samuelsson has said.
Volvo has launched this model of car ownership in response to the changing habits of the public, in which subscription services, for example for mobile phones and TV streaming, are increasingly popular.
Called Care for Volvo and launching on the new XC40 compact SUV, the subscription service includes insurance, taxes, maintenance and roadside assistance.
It also includes wi-fi access and a concierge service. Over time, more services will be added. For example, Samuelsson said that next year, food shopping will be able to be delivered to the car.
In the UK, the subscription costs £629 per month for the XC40 models available from launch, but will extend to other models over time. There is no deposit to pay and the fee is not affected by the buyer's age or location.
Care by Volvo also allows customers to share their car with up to three friends or family members with a new digital key technology. However, this is not yet available in the UK due to a lack of appropriate insurance policies. It is expected to launch next year.
When asked whether he could envisage a time when cars would only be available on subscription, Samuelsson said there would be “a long period where both [traditional sales and subscription] will work” but that it would very much depend on customer demand.