German carmaker Volkswagen AG has doubled its forecast for the share of electric cars produced in Europe. By the end of the decade, 70% of the vehicles produced by the manufacturer will be equipped with electric propulsion systems.
In addition, by that time, Volkswagen plans to supply more than 1 million electric vehicles annually to the markets in the region.
According to available data, the carmaker intends to increase the volume of electric cars supplied to markets in other regions, including the United States and China, by the end of the decade. “ We are increasing the pace and there will be more changes at Volkswagen in the next few years than ever before ,” said VW brand CEO Ralf Brandstätter.
Curiously, VW’s new target was announced after Europe overtook China in electric vehicle sales last year. It has also prompted some companies to accelerate the transition to electric vehicles.
For example, the Swedish Volvo and the British Jaguar have announced their intention to completely phase out the supply of vehicles with internal combustion engines by 2030. A similar statement was made earlier by the American company Ford Motor.
According to available data, VW sells about 1.8 million vehicles annually in Europe, while Ford sells about 960 thousand cars, and Volvo – 340 thousand cars.
The source notes that on its way to becoming an electric vehicle manufacturer, VW’s operating margin will remain at least 6% by 2023, despite the fact that electric vehicles are generating lower margins and the company continues to invest heavily in electrification and digital services.
Originally published at Phone mantra