Håkan Samuelsson, the Volvo chief executive, said the company did not want to be stuck targeting a shrinking market for petrol and diesel cars. He expected the carmaker’s sales to continue to grow as it moved to electric technology.
“To remain successful, we need profitable growth,” he said. “So instead of investing in a shrinking business, we choose to invest in the future – electric and online. We are fully focused on becoming a leader in the fast-growing premium electric segment.”
Rivals that have in 2021 unveiled formal plans to abandon fossil fuels include the Jaguar brand (by 2025) and luxury carmaker Bentley (by 2030). Jaguar’s move had “encouraged us to be a bit braver”, Samuelsson said.
Last modified on Fri 22 Jan 2021 09.19 EST
Electric vehicles are close to the âtipping pointâ of rapid mass adoption thanks to the plummeting cost of batteries, experts say.
Global sales rose 43% in 2020, but even faster growth is anticipated when continuing falls in battery prices bring the price of electric cars dipping below that of equivalent petrol and diesel models, even without subsidies. The latest analyses forecast that to happen some time between 2023 and 2025.
The tipping point has already been passed in Norway, where tax breaks mean electric cars are cheaper. The market share of battery-powered cars soared to 54% in 2020 in the Nordic country, compared with less than 5% in most European nations.