Volvo won’t follow Tesla in cutting the prices of its all-electric vehicles, citing strong demand and a solid backlog of orders on the EV front.

The statement belongs to the Swedish company’s CEO, Jim Rowan, who spoke with Reuters, saying that they have no intention to reduce pricing. “We don’t see (price cuts) at this point in time. Demand for our (battery electric vehicles) is the highest we’ve ever seen, the backlog for that as well,” he added.

Volvo's stand comes after Tesla slashed the prices on its models by up to 20 percent, starting what some say is an all-out EV price war, with Ford following suit and cutting the price of its all-electric Mustang Mach-E by up to $5,900, Lucid offering massive discounts, and VinFast planning promotions for its yet-to-be-delivered Vietnamese-made EVs.

As for Volvo, its worldwide plug-in sales tripled in 2022, with all-electric models accounting for 20 percent of the total sales volume – a record for the Geely-backed European carmaker. With this being said however, Volvo sold 12% fewer cars across its lineup, which includes gasoline and diesel models, and expects 2023 to be “another challenging year,” as in 2022 it experienced COVID-related supply chain issues in China.

Volvo isn’t the only car company that declared it will resist cutting prices for its EVs. Volkswagen Group’s CEO, Oliver Blume, said that they have no plans for reducing prices, saying that the group is focusing on reliability, instead, taking a jab at Tesla’s spotty track record in this regard.

At the same time, European brand Renault said that residual values and stability are its reasons for keeping a steady price strategy, while Porsche – which is one of the more expensive brands in VW Group’s portfolio – might actually increase its prices.