--- title: "EVs Will ‘Probably’ Cost Less Than Gas Cars In Five Years, Volvo CEO Says" description: "As [Ford shrugs off a $19.5 billion loss]() on its electric car push Volvo's standing tall [claiming success]()." date: "2026-02-03" modified: "2026-02-03" authors: - name: "Joel Feder" job_title: "Director of Content and Product" link: "https://www.thedrive.com/authors/joel-feder" url: "https://www.thedrive.com/news/evs-will-probably-cost-less-than-gas-cars-in-five-years-volvo-ceo-says" categories: - "News" - "News by Brand" - "Volvo News" tags: - "Electric Vehicle" --- # EVs Will ‘Probably’ Cost Less Than Gas Cars In Five Years, Volvo CEO Says ![2027 Volvo EX60]() As [Ford shrugs off a $19.5 billion loss]() on its electric car push Volvo's standing tall [claiming success](). In Stockholm, Sweden [Volvo]() CEO Håkan Samuelsson told reporters during a briefing, "I think if you look five years ahead I would say an electric car will most probably be lower in cost than a combustion car." This was minutes after stating Volvo's EVs are profitable and "our company's more profitable now as we have EVs." Samuelsson continued and said, "if we did not have EVs we would be less profitable." Without EVs Samuelsson said Volvo would have lower volume, which would translate to lower profits. While EVs might have slimmer margins for the automaker today, the extra volume despite slimmer margins makes a business case without losing money. "So far, our present electric cars have a lower margin, I think, that's no secret, but they are profitable," Samuelsson said. Samuelsson was quick to note, "we are not paying to get them" referring to building and selling electric cars at a loss like some competitors. With the latest electric Volvo, [the 2027 EX60](), the automaker introduces new manufacturing methods including cell-to-body integration and mega castings. The EX60 also brings forth new hardware including motors that were developed in-house. All of this will bring down the cost of the EV itself for Volvo to further improve margins and profitability, according to Samuelsson. Samuelsson said these changes are bringing forth more parity on the margins for vehicles like the electric EX60 and the gas-powered sibling sold today known as the EX60. The larger EX90 does not have the same margins in terms of profits as the gas-powered XC90, Samuelsson noted, but it's still turning a profit. The largest thing to make EVs more profitable are lower battery costs and a no-compromise vehicle architecture. "I mean, if you have compromises and, I mean, battery, for example, if you put in the battery in an extra aluminum box and the battery modules are is also in a battery box, so you have, like, a Russian doll. For a small deal, in one box, you put those boxes in a bigger box and the box you put in the chassis, you hear it doesn't sound very cost efficient. So now we put the cells directly into the body of the vehicle, that is going to bring down the cost," Samuelsson said. Samuelsson said while everyone claims solid-state batteries are the holy grail, "there is always a grass greener on the other side, but I think if you wait for that you probably will not be in the market anymore. Everything gets better, but you can not wait for it, wait for the ideal car. You have to be in business and learning. Right now I think it's a long, long wait for solid-state batteries to come, and there's a lot of potential to lower the cost of today's batteries." "But the chemistry develops, do you need these expensive, NMC batteries? I mean, it will be more LFP, lower raw material cost in those batteries, and sacrificing a bit on the range, but on the range, you will reach a level where you stop talking about it, and then you could instead lower the cost. It's like now the fuel tank is big enough, so maybe now I can make the fuel tank cheaper with plastic tank," Samuelsson said. *Got a tip? Send us a line at tips@thedrive.com* ## Author Overseeing what you see, read, touch, hear, and interact with from the vast lakes of Minnesota, Joel Feder shapes how The Drive looks and operates as the head of content and product initiatives. On a daily basis, Joel leads the newsroom and editorial staff playing point on both short-term coverage and long-term strategic plans. His mission is to help ensure The Drive shapes the future of automotive media by helping the team execute original reporting, breaking news, and exclusive opportunities. Regarded as an industry insider and recognized by colleagues, fellow journalists, and manufacturers as a point-person and leader in the industry, Joel owns and runs the largest automotive professionals group on Facebook in an effort to serve and help others. Joel serves as a juror for the World Car Awards. In addition, he is the board chair and chair of the governance and nominating committee for Move Forward MN, a local non-profit that helps at-risk youth with barrier-free mental health and housing services. While you’re reading this he’s either on his computer or iPhone chasing the latest news or drafting a story. ### Author social links [Instagram]() [LinkedIn]() [Bluesky]() [Email]()