by WANG Zhen

Volvo Cars Greater China has entered the DUAN Jianjun era.

On May 11, Volvo Cars announced Duan as president and CEO of Greater China, effective immediately, replacing Yuan Xiaolin, who has stepped back from day-to-day operations.

The leadership change comes as Volvo faces mounting pressure in China. Its gasoline-car business is weakening, while its new-energy lineup has yet to take over as the main growth driver. At the same time, aggressive discounting by Mercedes-Benz, BMW and Audi is squeezing Volvo's pricing power.

The Swedish luxury brand is now caught between established premium rivals and fast-rising Chinese EV makers. In the first quarter of 2026, Volvo’s Greater China sales fell 17% year on year to about 28,300 vehicles.

Yuan played a key role in Geely's acquisition of Volvo and later helped build the brand's localized operations in China. Duan, who spent 13 years at Mercedes-Benz, now faces a broader task: not just stabilizing sales, but helping Volvo rediscover growth.

The XC60 and S90 remain Volvo's core models in China, but dealer discounts on both have reportedly reached around 130,000 yuan.

Volvo's EV transition is also progressing unevenly. New-energy vehicle sales in Greater China rose 116% year on year in the first quarter to about 7,000 units, but still accounted for only 27% of total sales.

Flagship EVs including the EX90 and ES90 are still in presale. The EM90 electric MPV, priced from nearly 600,000 yuan, sold only 25 units in April. The lower-priced plug-in hybrid XC70, seen as a key volume model, sold 2,519 units.

The broader challenge is that China's luxury-car market itself is changing. As Mercedes-Benz, BMW and Audi push prices lower, Volvo's traditional price band has narrowed. At the same time, Chinese brands such as Li Auto, Aito, Nio and Zeekr are reshaping the premium market above 300,000 yuan.

Chinese consumers are no longer buying luxury cars for the badge alone. Smart features, user experience and pricing value increasingly matter more. Volvo's long-standing reputation for safety and Scandinavian design still carries recognition, but no longer guarantees a premium.

Li Yanwei, a member of the expert committee of the China Automobile Dealers Association, told Jiemian News that Chinese consumers increasingly judge safety through measurable features and specifications promoted by EV startups.

"When safety becomes a product capability that can be quantified and compared, Volvo's traditional safety premium weakens," Li said.

Duan's role will go well beyond sales. He will oversee Volvo's end-to-end China operations, including R&D, procurement, manufacturing and sales, while reporting directly to the China board.

That gives him a role closer to a full business operator than a conventional foreign-brand executive. Alongside Volvo's global management structure, he will also need to navigate Geely's broader China strategy under chairman Li Shufu.

Li Yanwei said the reporting structure could shorten decision-making and help Volvo respond faster to Chinese market demand.

Duan's background spans Mercedes-Benz, BMW and other luxury-car operations in China, covering sales, dealer networks, after-sales service and brand management. Several Chinese media outlets have also reported that he once worked as a Volvo service technician early in his career.

That experience may help Volvo tackle immediate dealer and pricing pressures. Li said Volvo needs to stabilize dealer confidence, improve sales conversion and regain control over terminal pricing.

For luxury brands, excessive discounting damages more than profits. It also weakens residual values, owner confidence and long-term brand perception. Once consumers believe prices will continue falling, short-term sales gains can come at the cost of future pricing power.

Still, Volvo's problems cannot be solved through channel management alone.

If models such as the EX90, ES90 and XC70 fail to gain traction in product competitiveness, pricing and brand positioning, the impact of the leadership reshuffle could remain limited.

Li said Duan's experience would matter more if it helps push Volvo's China operations deeper into product definition, R&D coordination and manufacturing integration with Geely's technology platform.

A person at Geely Research Institute told Jiemian News that a significant portion of Volvo's EV development work is already handled by the institute. The key challenge, the person said, is improving how efficiently those resources translate into competitive Volvo products.

In China's crowded premium EV market, safety alone is no longer enough. Volvo now needs to convince buyers why they should choose a Volvo EV over rivals offering stronger smart-driving systems, charging ecosystems and value at similar prices.

Duan's experience gives Volvo operational depth, but not an automatic solution. The real test is whether broader management control can translate into faster product cycles, a steadier dealer network and a clearer brand identity in China.

That answer will likely come in Volvo's next product cycle.