How Volvo is marketing its electric vehicles in a moment of uncertainty
By Kimeko McCoy • September 24, 2025 •
Ivy Liu
President Donald Trump’s so-called “big beautiful bill” ends a $7,500 electric vehicle tax credit at the end of this month, which could impact EV sales — not to mention economic headwinds and tariff effects on auto prices.
Through it all, Volvo is trying to grow its market share in the U.S. from 1 to 2% and push EV sales, according to Rafael Ugo, head of marketing at Volvo Car Americas. To do so, the global automotive brand is taking an offline, hyperlocal approach to its marketing strategy.
“We are seeing this transformation, this transition, being a little bit slower than what we thought years ago,” he said. “For us, I want to find the 2% that’s really to move from a gas to electric vehicle. Those customers, they’re already there in the market.”
For Volvo, that shift in money refers to the 30% of its ad budget that’s now going to brand awareness channels, including billboards, sponsorships, partnerships, influencers and in-person events. (Ugo did not provide exact spend figures.) It’s a move away from overdependence on a broad, national digital strategy to educate and convince shoppers to not just to buy a Volvo EV, but to make the case for EVs in general.
“We might need to focus on some of the states and areas that we believe we can make a big difference,” Ugo said. “We start shifting money around to focus on areas that make much more sense in terms of market, in terms of business opportunity, in terms of exporting culture and so on.”
Volvo’s hyperlocal approach is powered by IPG’s Initiative, its new global media agency as of this January. As opposed to targeting everyone across all 50 states, Volvo’s marketing strategy instead intends to focus on specific states that seem more apt to technological advances and/or sustainability, per Ugo, who did not list specific states or areas.
“We want to be recognized as the premium electric [vehicle] brand in the future. By saying that, we need to look state-by-state in a different way — in who they are, how they behave, how they live, and what is the important message behind electrification to those areas,” he said.
The strategy shift comes at a pivotal time. True, EVs are still selling, but the boom may not last forcing auto brands to rethink their EV strategies. (For example, EV automaker Rivian released its first-ever brand campaign over the summer to increase its market share even in light of economic headwinds.)
In addition to the federal tax credit for EVs, which is now expected to sunset by Sept. 30, import tariffs, legislative uncertainty and lagging infrastructure has slowed EV adoption, at least in the U.S. According to recent research from EY, the U.S. is now expected to reach 50% battery electric vehicle adoption by 2039, five years later than previously forecast.
At the same time, Volvo Group has been feeling the effects of what it called a “challenging environment for the automotive industry” in its Q2 earnings report. In that report, Volvo said that in the first six months of this year, car sales were down by 9% in comparison to that same time frame last year.
Daelin Mackey, integrated media director at independent media agency True Media said Volvo’s playbook mirrors what other large brands are doing to better balance brand building with localized performance marketing. “They’re positioning themselves as a trusted brand during uncertain times,” she said.
