Volvo aims 50 percent of sales to be electric by 2025

Volvo Cars has announced that it aims for fully electric cars to make up 50 percent of its sales by 2025. The announcement builds on Volvo Cars' 2017 industry-first announcement that all new models released from 2019 will be available as either a mild hybrid, plug-in hybrid or battery electric vehicle.

The Chinese government plans to have new-energy vehicles account for more than 20 percent of the country's annual car sales by 2025, which equates to more than seven million vehicles, based on Chinese government forecasts.

Volvo Cars currently produces the S90 and the S90L T8 Twin Engine in China. This week marks the start of production for the XC60 T8 Twin Engine in China, meaning that soon all three Volvo Cars China plants - Luqiao, Chengdu and Daqing - will produce either plug-in hybrid or battery electric cars. 

At the Beijing Auto Show, Volvo Cars will visually reinforce the company's position as an industry leader in electrification with all 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.

The early success of the XC40 supports Volvo Cars' expectations of strong demand for its new small SUV in China. 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.

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.

The local launch of the new XC40 and the company's deepened commitment to electrification leave Volvo Cars well-positioned to deliver on its ambition to further boost its share of the world's largest car market.