Volvo Cars wants fully electric vehicles to consist of half their lineup by 2025. The announcement builds on Volvo’s commitment last year that all new models released from 2019 will be available as either a mild hybrid, plug-in hybrid or battery electric vehicle.
“Last year we made a commitment to electrification in preparation for an era beyond the internal combustion engine,” explained Håkan Samuelsson, President and Chief Executive Officer of Volvo Cars.
The move is also part of Volvo’s strategy to strengthen itself in China, a prime market for electrified vehicles. The Chinese government plans to have new-energy vehicles account for more than 20 percent of annual sales by 2025, which equates to more than seven million autos, based on Chinese government forecasts.
“China’s electric future is Volvo Cars’ electric future,” Samuelsson added. “Today we reinforce and expand that commitment in the world’s leading market for electrified cars.”
Volvo currently assembles the S90 and S90L T8 Twin Engine in China, and production of the XC60 T8 Twin Engine will commence in China soon, meaning all three Volvo China plants – Luqiao, Chengdu, and Daqing – will produce either plug-in hybrid or battery electric vehicles.
China is Volvo Cars’ largest individual market, recording a 23.3 percent first quarter sales increase this year alone, while sales in China last year passed 100,000 units for the first time. The eagerly anticipated XC40, crowned 2018 European Car of the Year, is expected to find a warm audience in China as well.
“The early success of the XC40 supports Volvo Cars’ expectations of strong demand for its new small SUV in China,” reads a statement from Volvo Cars. “These expectations are also underpinned by growth forecasts for the segment over the next five years, as well as a growing middle-class population and China GDP growth trends driven by domestic consumption.”
Volvo will have an extensive array of hybrid vehicles on display at the Beijing Auto Show, which runs through May 4th.