The Volvo XC40 Recharge SUV.
Volvo Group says it is accelerating its electrification strategy to meet its target and take advantage of the opportunities presented by the automobile industry’s shift to emerging technologies.
In 2016, the Swedish car manufacturer committed to putting one million electrified cars on the road by 2025. It also revealed it intends to see 50% of its sales consisting of electrified vehicles by 2025.
This, as automakers across the globe have in recent years outlined their targets to electrify large portions of their vehicle models, as more governments introduce carbon-neutral programmes and policies.
Speaking yesterday at the Volvo Group’s Capital Markets Day event, the group’s president and CEO Martin Lundstedt outlined the major business opportunities in the ongoing technology shift that is expected to accelerate Volvo’s sales growth.
Volvo Group, which has recorded good profitability over the last decade, is now taking the next step on its strategic journey – with the main driver of its growth expected to come from its higher value electric vehicles (EVs), according to Lundstedt.
“Climate change is the challenge of our generation. At the same time, demand for transport and infrastructure continues to grow and we must meet this demand with more sustainable solutions.
“In this changing landscape, we can lead the transformation and provide increased value for our customers and embark the Volvo Group on a growth journey driven by electrification, autonomous solutions and new productivity services. We are geared for growth.”
Across the globe, the group has a variety of EVs and battery-electric models, which include the XC40 Recharge SUV, Explore V90 Recharge, Explore V90, Explore V60, Explore V90 Cross Country and Explore V60 Cross Country.
The manufacturer has also been offering autonomous and electrified trucks to the mining industry since 2016.
Lundstedt went on to note that through the rollout of more electric vehicles, the company looks to increase the total vehicle and service revenues per unit by more than 50% over the lifecycle.
He added there is a strong pull from organisations that want to partner
with the Volvo Group to decarbonise their own value chains and those of their customers.
“Our modular vehicle architectures will continue to serve us well, creating flexibility as well as cost and capital efficiencies in both R&D and the industrial system, as we go through the transformation to electric and autonomous vehicles.”
The Volvo Group also develops transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services.