President and chief executive of Volvo Cars, Hakan Samuelsson, said in a statement that the move “marks the end of the solely combustion engine-powered car,” reiterating his target of selling one million electric cars and hybrids by 2025.
The Swedish luxury car maker that was founded in 1927, now acquired by Geely, planned to launch five new electric and hybrid vehicles between 2019 and 2021. Two of the new models would be built by Polestar, the performance-car unit that Volvo is spinning off as a “separately-branded electrified global high performance car company.” The models introduced before will still be available with conventional powertrains, possibly until the end of their life cycles. The upmarket hybrids, as per today’s ‘Twin Engine’ T8 models, will feature larger battery packs offering plug-in functionality for all-electric city commuting, Volvo also added that it also plans to ensure that its manufacturing facilities are “climate-neutral” by 2025. “People increasingly demand electrified cars,” Volvo CEO said in Wednesday’s statement.The US was Volvo’s fastest-growing market last year, posting an 18 per cent increase in sales to 82,726 vehicles, driven by the popular XC90 luxury sport-utility vehicle. China is becoming now the biggest market for electric cars.