Volvo Cars has announced that its aims for fully electric cars to make up 50% of its sales by 2025. The announcement comes after Volvo made an industry first statement in 2017 that all its new models from 2019 would be available in either mild hybrid, plug-in hybrid or battery electric vehicle. The Swedish brand's strategy to generate half its sales from EVs by 2025 makes it a powerful player in China as the country plans for new-energy vehicles to makes up over 20% of its annual car sales by 2025, making it the world's leading market for electric cars.
“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 will start the production of the XC60 T8 Twin Engine in China, alongside the already in production S90 and S90L T8 Twin engines. This means that the plants at Luqiao, Chengdu and Daqing will produce either plug-in hybrid or battery electric cars.
Volvo Cars' will showcase its advancement in the field of electric cars at the Beijing Auto Show by having all its cars on display plugged in. The event marks the first time the company displays only plug-in hybrid vehicles at an auto show.
In another first, side-by-side on stage, the company is displaying its three globally available SUVs: the XC90, XC60 and the new XC40. Beijing also marks the first public appearance for the T5 plug-in hybrid version of the new XC40.
China is Volvo Cars’ largest individual market and this year delivered a 23.3 percent first-quarter sales increase, contributing to the company’s first-quarter global sales growth of 14 percent. Volvo car sales in China last year passed 100,000 units for the first time.