In what many see as a surprising move, Volvo Cars has taken a strategic minority stake in carwow, a leading online car marketplace. The investment was made through the Volvo Cars Tech Fund, Volvo’s venture capital arm.
carwow has experienced considerable growth in recent years and is now one of the market leaders in the UK, Germany and Spain for online sales of new cars. Volve plans to use the investment to gain valuable insights in areas such as online sales, customer acquisition and content creation, which will help its shift towards online and direct customer relationships.
“Third-party marketplaces play a key role in any consumer industry, which includes the competitive landscape of Volvo Cars,” said Lex Kerssemakers, chief commercial officer at Volvo Cars. “We were one of the first car manufacturers committed to shift to online sales and through this strategic partnership, we will learn and gain insights into online buying behaviour. Our collaboration with carwow will help us and our retail partners grow volumes and reach our target of selling around half of our volume online by 2025.”
Volvo Cars’ move towards online sales is integral to its aim of becoming a global leader in the fast-growing premium electric segment with millions of direct consumer relationships. Its online sales strategy is based on changing consumer behaviours and industry trends in combination with its ambition to be a leading pure electric car brand by 2030.