Following the news that all its new models will be available in either a mild hybrid, plug-in hybrid or battery electric vehicle in 2019, Volvo Cars has further announced that fully electric cars will make up 50% of its sales by 2025.
The company’s strategy to generate half of its sales from electric cars by 2025 is said to position 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,” stated 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 produces the S90, S90L T8 Twin Engine and XC60 T8 Twin Engine in China, with all three of the company’s China plants – Luqiao, Chengdu and Daqing – now producing either plug-in hybrid or battery electric cars. The T8 Twin Engine incorporates two permanent magnet synchronous motors, in conjunction with a 2.0l turbo charged internal combustion engine. The vehicle’s high voltage LI-ion battery receives energy from grid charging as well as from regenerative braking.
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.