Volvo has taken a strategic minority stake in online car buying platform Carwow, supporting plans to go digital-only for car sales.

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

Carwow is one of the market leaders in the UK, Germany and Spain for online sales of new cars, and Volvo said the investment – made through its Volvo Cars Tech Fund venture capital arm – would bring valuable insights. These include areas such as online sales, customer acquisition and content creation, which will help its shift towards online and direct customer relationships.

The carmaker announced a year ago that it’s looking to move all sales online by 2030, alongside going fully electric for all models, as it looks to future-proof its business.

Speaking at the time, Lex Kerssemakers, chief commercial officer at Volvo, said the brand wants to offer customers peace of mind and a care-free way of having a Volvo, by taking away complexity while getting and driving the car.

Its equity investment in Carwow is the next step in the existing partnership between the two firms, which includes collaborations on Volvo’s subscription service as well as driving traffic and sales leads to Volvo Cars and its retail partners.

“Third-party marketplaces play a key role in any consumer industry, which includes the competitive landscape of Volvo Cars,” said Kerssemakers.

“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’s online sales strategy is based on changing consumer behaviours and industry trends and works in tandem with its ambition to be a leading pure electric car brand by 2030.

The company’s focus on online sales and direct customer relationships includes creating a simple and hassle-free experience for ordering Volvo products and services, with transparent pricing and product information, as well as clarity on delivery times through its online store on volvocars.com.

Dealerships will remain a crucial part of the customer experience and will continue to be responsible for a variety of important services such as preparing, delivering and servicing cars

“Volvo Cars and Carwow have the same ambitions: to make buying a car online easy and seamless and help consumers switch to electric cars,” said Alexander Petrofski, head of the Volvo Cars Tech Fund. “Our investment in Carwow is a good example of how the Volvo Cars Tech Fund aims to support the overall strategic direction of the company.”

Financial details of the Volvo Cars Tech Fund investment in Carwow were not disclosed.