Volvo set their sights on EV market dominance

Swedish vehicle manufacturers Volvo recently laid down a challenge to Tesla and other electric vehicle (EV) manufacturers, stating their intentions to dominate the global EV market.

Despite not yet having a pure-EV on the market, Volvo have set themselves the ambitious target of generating 50 percent of global sales from this category by 2025.

Volvo hopes that achieving this goal will aid in their attempt to reach the additional goal of a 50 percent reduction in tailpipe carbon emissions per vehicle between 2018 and 2025.

It’s a lofty goal to set for the Swedish carmakers, with Tesla currently owning a majority of the EV market share.

Tesla were far and away the leading producer of EVs in 2019, selling a record 367,000 vehicles globally. This was aided by the release of the Model 3 which sold 301,000 vehicles by itself, more than the total amount sold by the second highest EV producer, BYD (221,000).

Volvo also had a record year in 2019, selling 705,452 vehicles. However, for the company to generate 50 percent of its sales through EVs, it would need to sell approximately 350,000, more than Tesla currently sells.

While a bold target to set themselves, President and CEO of Volvo Car USA, Anders Gustafsson, believes sending a strong statement about reducing carbon emissions would appeal to potential customers.

“If you have something that is a very, very strong statement that everyone agrees is the right statement, we would like to use that as a competitive advantage,” said Gustafsson.

“Safety is really a competitive advantage, and now we’re going to focus on the more environmental aspect that signals to our competitors let’s start the game.”

Gustafsson also pointed out Volvos reputation as a leader in automotive technology for the lofty goals, believing it was their actions, not words that would bring change to the automotive industry.

“I’ve worked at Volvo my whole life, and the reason why I started to work with Volvo was the safety approach. Everyone knows that we invented the [three-point] safety belt and everyone talks about that and that we gave it for free to our competitors because we need to save lives.”

Volvo will enter the pure-electric vehicle market in 2020 with the XC40 Recharged, joining the current hybrid range which include the XC90, XC60, V60 and S60. In total, five new full-electric models will be released by 2021.

Original source: Forbes | Volvo set to challenge Tesla for electric car supremacy

23 Jan 2020