Volvo is focusing a lot on Chinese market to drive growth for the brand as the sales increased 23.3 percent in first quarter of this year
Volvo is betting big on electric cars as the Swedish manufacturer announced that they want electric cars to make up 50 percent of its sales by 2025. Earlier Volvo revealed that they are planning to sell one million electric cars by 2025.
But the surprising fact is that the company is yet to launch its first electric car. The first model from Volvo’s new electric car platform is expected to XC40 which will go on sale next year and the company hasn’t released details about the upcoming EV.
Volvo is also planning to launch four electric models between 2019 and 2021, among them two will be under Volvo brand and rest of them under Polestar performance brand. Volvo will officially launch Polestar 2 in 2019 followed by mid-size BEV which will compete head on against Tesla Model 3. Then the next product is Polestar 3 which is a large SUV-style BEV.
Volvo is focusing a lot on Chinese market to drive growth for the brand as the sales increased 23.3 percent in first quarter of this year. The middle class growth in China along with growing trend of the country will help the brand to improve its sales further according to CEO Hakan Samuelsson.
Volvo is planning to position it as the Industry leader in electrification by showcasing plug-in-hybrid models at Auto China which includes XC60, XC90 and XC40. Chinese government is focusing on electric cars to reduce the pollution as they lifted the ownership limit of electric and hybrid manufacturers this year to increase production and attract more electric companies to China.
Volvo is owned by Geely which is based in China and the growth of electric cars segment in China will drive the growth of the company. Geely recently bought 10 percent share in Daimler and this move is to make a partnership between Volvo and Mercedes Benz to develop a new EV platform.
This will help Volvo to improve its existing EV platform with the help of Mercedes and their technologies. At the end, it will be a win-win situation for the customers as they get more technologies at an affordable price point.