Volvo aims to make 50% of its sales from EVs by 2025, following a pledge to sell only electrified vehicles from 2019
Volvo has announced that it plans for electric vehicles to fuel half of its sales by 2025.
This is a step up from Volvo’s previous plans. It previously aimed to have an electric motor in all its new cars, but said that the majority would be hybrids.
This builds on Volvo’s already ambitious commitment to EVs and hybrid vehicles. Of course, with most car makers announcing their own EV commitments, it seems that Volvo’s had to up the ante.
This puts it amongst the most ambitious contenders in terms of ICE car makers making the transition to EVs. However, it remains to be seen exactly how crowded the market will be by 2025.
“Last year we made a commitment to electrification in preparation for an era beyond the internal combustion engine,” said president and CEO of Volvo Cars Håkan Samuelsson. “Today we reinforce and expand that commitment in the world’s leading market for electrified cars. China’s electric future is Volvo Cars’ electric future.”
Volvo said that its plan will make it a powerful player in China, the world’s leading EV market, and one that is set to grow further.
The Chinese government plans to have new-energy vehicles account for more than 20% of the country’s annual car sales by 2025, which equates to more than 7 million vehicles, based on Chinese government forecasts.
China is Volvo Cars’ largest individual market and this year delivered a 23.3% first quarter sales increase, contributing to the company’s first-quarter global sales growth of 14%. Volvo car sales in China last year passed 100,000 units for the first time.
Volvo will start production on the XC60 T8 Twin Engine in China, meaning that all its Chinese car plants will be producing plug-in hybrids or battery-powered cars.