Volvo Cars launched its first ever electric multi-purpose vehicle in Shanghai on Sunday, marking the Swedish premium brand's attempt to enter a brand-new segment.

The EM90, priced at 818,000 yuan ($112,135), will be first sold in China as the premium MPV market is booming in the country, with a growing number of new choices from local brands.

"We actually see a move from executives traveling in sedans to executives traveling either in SUVs or even more so in MPVs," said Jim Rowan, chief executive of the carmaker, in an interview with China Daily.

"Many executives who we think will buy this car spend a lot of time commuting, and that is what makes this market exciting for us," he said.

Rowan called the model a living room on the move, adding that Volvo's signature features including safety, sustainability and Scandinavian design will prove attractive.

He added that Volvo is not a "volume player" and there are "enough people in China who appreciate the differences Volvo brings".

The EM90 also marks a new step towards Volvo's goal to become a fully electric carmaker by 2030.

But Rowan said electrification is just the tip of an iceberg when it comes to the future of the automotive industry.

He said one of the most important decisions he has made since he took the helm of Volvo in March 2022 was to accelerate development and increase investment in software.

Software, chips, connectivity and data will be key drivers of the next-generation mobility, said Rowan, who worked as COO at BlackBerry and CEO at Dyson before joining Volvo.

He added China is changing very rapidly, not only in the automotive industry but also in terms of technology, so Volvo tries its best to listen to the customers and looks at its competitors to see why they are successful.

"I don't know if we will be successful in China as we have been. I hope so. But if we are to continue the success, I think it is because not only we stay hungry but also because we stay humble."