Volkswagen shows profound confidence in future of electric mobility

Volkswagen shows profound confidence in future of electric mobility

Volkswagen (VW), the largest automaker in Europe, has expressed confidence in electric mobility by stating that declaring that at least 50 per cent of its global vehicle sales will be battery-powered electric vehicles (BEVs) by the end of 2030. Presenting its strategy until 2030, VW said that it would accelerate the pace of electrification of its vehicles, making EVs to account for half of the company’s total sales volume by the end of current decade.

The German auto giant’s targets come ahead of a huge package of climate policies that the European Union (EU) is going to announce early next week as part of the region’s efforts to cut carbon emissions. The policies will possibly include a de-facto ban of petrol-based cars from 2035.

The announcement of the targets is part of the German automobile manufacturer’s goal to overtake Tesla Motors, the Palo Alto, California-headquartered electric car pioneer, as the world's biggest EV manufacturer by the end of 2025. At present, the EV segment accounts for merely 3 per cent of VW’s global sale volume.

VW Chief Executive Officer (CEO) Herbert Diess said that the company is well on track to become the world’s largest manufacturer of EVs.

Speaking on the topic, CEO Diess said, “We set ourselves a strategic target to become global market leader in electric vehicles - and we are well on track. Now we are setting parameters.”

The manufacturer has reported higher than expected earnings for the first half (January to June) of current year. The strong performance of the manufacturer’s existing business and higher than expected earnings will eventually allow the manufacturer to invest in new battery and software technologies to pave way for EVs in the future. It aims to invest €150 billion (US$178 billion) in areas like EV batteries and software by the mid of current decade.

Last month, VW declared that it would stop selling conventional petrol/diesel-powered cars in European countries by 2035 and a few years later in China as part of its shift towards EVs.

As lack of charging infrastructure and range anxiety remain key hurdles on the way to mass adoption of EVs, the German automaker has decided to double the number of charging stations it operates around the globe by the middle of current decade. It aims to have more than 1,800 fast EV charging stations with 10,000 individual chargers installed by Dec. 31, 2025. The high margin goals undoubtedly represent the manufacturer’s profound confidence in the future of electric mobility.