Volvo Cars aims for fully electric cars to make up 50% of its sales by 2025.
The company’s strategy to generate half of its sales from electric cars by 2025 positions it as a powerful player in China, the world’s leading market for electrified cars.
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 seven million vehicles, based on Chinese government forecasts.
‘Last year we made a commitment to electrification in preparation for an era beyond the internal combustion engine,’ said Håkan Samuelsson, president and CEO of Volvo Cars. ‘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 Cars currently produces the S90 and S90L T8 Twin Engine in China. Soon all three Volvo Cars China plants – Luqiao, Chengdu and Daqing – will produce either plug-in hybrid or battery electric cars.
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%.