Ström, Volvo Penta’s Head of Marine for International Markets, discusses the propulsion company’s latest technology and Asia-Pacific updates.
Interview: Andrew Dembina; Photos: Volvo Penta & Grandtech International Engineering

Erik Ström, Head of Marine, International Markets, Volvo Penta

Based in Volvo Penta’s headquarters in Gothenburg on Sweden’s west coast, Erik Ström has been working with Volvo Penta’s marine business in Asia over the last 12 years and in November 2024 took on the role as Head of Marine, International Markets.

However, last December marked a first for Ström and Volvo Penta as the company participated for the first time at the Marintec China exhibition in Shanghai. Volvo Penta’s display was part of the Asia launch of its IPS (Inboard Performance System) Professional Platform, as used on the likes of Sanlorenzo’s SX120.

As Shanghai is home to Volvo Penta’s China headquarters, Ström teamed up with Roger Liu, Head of Marine China, now in his 15th year with the company, and David Hamilton, an 18-year Volvo Penta veteran who moved to Shanghai last year following his appointment as Head of China.

Erik Ström with Volvo Penta’s Roger Liu (Head of Marine, China) and David Hamilon (Head of China) at Marintec China in Shanghai

Ström next visited Volvo Penta’s Hong Kong dealer, Grandtech International Engineering, whose team led by founder and General Manager Meme Poon was exhibiting at the Hong Kong International Boat Show in Club Marina Cove.

How was 2025 for Volvo Penta in terms of yachting use in Greater China and other parts of Asia-Pacific?

We’ve had stable growth in Asia-Pacific over many years and we’re happy to see this continue. China in 2025 was tougher, with much of this due to the ongoing trade and tariffs situation with the US. The overall global economy has slowed down, specifically for us in the yachting and leisure segments. But we’re going strong with commercial and governmental sales in the region, including in China.

Have Greater China shipyards using Volvo Penta remained strong?

Yes, certainly. Cheoy Lee Yachts uses Volvo Penta on some models, and we have some new products under discussion with them.

In our mainland China yachting business, we also have longstanding partners and key OEMs (original equipment manufacturers) like Aquila, Marlow, Aquitalia, Sea Stella, Integrity, SilverYachts, Pearl, HeySea and McConaghy. Also, Oceanwalker – which displayed at the recent Hong Kong show – is an interesting, up-and-coming client of two or three years for us and is exploring new hybrid technology for catamarans.

Volvo Penta at Marintec China 2025 in Shanghai

How is Volvo Penta’s business in Australia and New Zealand?

They’re important markets for Volvo Penta. If we look at Australia specifically, we have key OEMs like Riviera, which builds a lot of yachts with our IPS system. They’ve been loyal customers to Volvo Penta for many, many years. Also in Australia, we have Maritimo, which is a long-standing partner.

From these, we’ve developed a long-standing service and dealer network in the Oceania area, and are developing new products that may fit their new models very well.

How do Volvo Penta’s service providers in Asia-Pacific compare to those in other markets?

We continue to expand our dealer network across Asia-Pacific and review our performance. We are in a good position, but need to continuously ensure we provide the most premium service to yacht clients in this region.

Grandtech is a great example of the high level of professionalism we want in our representatives in Asia-Pacific. And as we step towards superyacht clients with the new IPS Professional Platform, this brings another type of demand, to be able to serve these clients and meet their expectations.

Meme Poon, founder and General Manager of Grandtech International Engineering, the Hong Kong dealer for Volvo Penta

We are working very closely with our local Volvo Penta dealers in Greater Asia – such as Grandtech in Hong Kong – and with brokers and boat dealers, to make sure we cover and support customers who use our technology. We identify spots where we can improve as a service provider and distributor.

What’s the appeal of the IPS Professional Platform?

The focus is on a great user experience. It’s a modular system that today, in its first phase, offers an integrated combustion propulsion solution. Soon, we’ll also provide hybrid solutions and full-electric solutions that can be applied in yachts, as well as in our commercial and governmental marine projects.

Can you tell us about demand in Greater China for the IPS Professional Platform?

We started to deliver the physical drive out of our factory in mid-2025. We have some prospects in China that we’re working with, mainly on the commercial side initially, which is why we chose to launch it in Marintec. We’re also talking to some superyacht builders in southern China and Taiwan that have shown great interest. I’m confident we will make good progress over the coming years.

How important was last year’s world premiere of the Sanlorenzo SX120, the first composite yacht to feature the IPS Professional Platform?

It was certainly a big moment. Sanlorenzo is a long-time partner with Volvo Penta and its SX range of yachts has been exclusively designed with our IPS, so we’re happy to be able to grow with the larger sizes of these yachts.

Sanlorenzo’s SX120 is the first yacht series to feature the Volvo Penta IPS Professional Platform

Sanlorenzo is a strong, global brand and we’re very happy to continue working with them. We match well. By using the IPS Professional Platform, Sanlorenzo could design a vessel that had unique features. Given the compact size of our package, it allows designers and the shipyard more room and flexibility in their vessel layouts.

Achieving more living space and more usable space on yachts – which is essentially what all builders and users want – is a key efficient feature of the IPS system, but are you also introducing an Eco Mode system on the Professional Platform?

Yes. With this feature, you can operate the system on only one out of the two engines per drive line in slow cruising speed. This can significantly reduce fuel consumption and C02 footprint, extend the cruising range and lower servicing costs.

Last September, Volvo Penta announced the launch of a next-generation autopilot system that’s fully integrated with the Electronic Vessel Control (EVC) system. Does this manage the propulsion system, engines, steering and ‘auto treatment system’?

Yes, the EVC system is the ‘brain’ and the ‘backbone’ of Marine propulsion solutions. We have launched our own autopilot system, developed in house and fully integrated with our EVC platform. It will enable us, and ultimately the user, to unlock more control of autopilot features in our propulsion solutions.

Do you expect these functions to be aimed more at commercial vessels or the private yachting sector?

Our current autopilot is for the leisure and yacht applications using our IPS and stern-drive systems. It’s also being developed and approved for commercial applications. We will still have an interface that allows a third-party autopilot to be integrated, if that’s preferred.

IPS Professional Platform on the Sanlorenzo SX120

Can you tell us about the new IPS-E electric range, which was announced in May 2025 and complements the hybrid range launched in 2024?

For pleasure craft and yachts, we see it as very likely that hybrid solutions will become more preferred. This comes with user-operation research and interfaces developed for yachts and other pleasure boats.

Whereas fully-electric IPS seems very likely, we will see it more in commercial workboats and passenger ferries, or where there is more predictable operational behaviour, because it will be dependent on how boats can charge on their routes.

In short, the trends we see today are that hybrid will be more popular in leisure and yacht applications and fully electric [propulsion] will be available for yachts but very likely used more in the commercial sector.

With yachts in mind, how is the company’s research on hydrogen and methanol propulsion progressing?

We’ve been looking at these over a couple of years, trying to understand possibilities and looking at future alternatives for fuels. Our conclusion is that there will not be a single source of future fuel. There will rather be different streams of alternatives of hybrid, fully-electric and potentially methanol and hydrogen fuels in the yachting segment.

Roger Liu and Erik Ström representing Volvo Penta in Shanghai

The key is that infrastructure needs to continue to develop to support the yachting industry, to make this [direction] viable and more attractive for owners and builders.

We are experimenting with alternative fuels in-house and in our R&D department. Today we do not have a commercial product for it, so we do not offer it broadly to the market. Rather, we are trying to understand where the market is going and how it suits our products and applications.

What other Volvo Penta developments are in the pipeline?

From a product perspective, we will focus a lot on bringing our new IPS Professional Platform and the IPS-H (hybrid) and IPS-E (electric) to the market. From a customer perspective, interesting developments in Asia are Grand Banks and Palm Beach Yachts in Malaysia, as the Palm Beach 107 is powered by our IPS Professional Platform.

In Italy, a 48m Baglietto under construction is the first full-custom superyacht to incorporate the IPS Professional Platform, which is also being used on the upcoming Amer 41 Explorer steel superyacht. Also in Italy, Azimut’s Seadeck 7 (71ft) and Sanlorenzo’s recently revealed SHE project (84ft) integrate our new IPS-H system.

Roger Liu and Erik Ström visit Meme Poon and the Grandtech team at the Hong Kong International Boat Show in December 2025

These are all interesting and show how the market and the OEMs are starting to adopt our new technology. Internationally, we’re selling more IPS and we see a trend with our OEMs in building bigger boats.

Overall, are you encouraged by what you see in Asia?

We’re seeing strong momentum in Asia on the yachting side. We’re taking market share and continuing to build our footprint on the pleasure boat and yachting segment. It’s going to be an area where Volvo Penta will continue to invest and increase our presence going forward.

In southern China and Taiwan, we’ve had good momentum over the last couple of years, and we expect to continue to grow our market share there. Moving ahead, it’s also another market that we will invest in with our new products like hybrid and the IPS Professional Platform.
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