Volkswagen aims to sell half of its vehicles as electric by 2030

Volkswagen aims to sell half of its vehicles as electric by 2030

According to the German automaker, Volkswagen expects battery-electric vehicles to account for half of its sales by 2030. By 2040, nearly all of the business’s automobiles in major market segments should be zero-emission vehicles, according to the company. These goals are part of Volkswagen’s larger goal of becoming carbon-neutral by 2050.

The company said it would focus on developing software to enhance revenues as it transitioned its vehicles away from the internal combustion engines (ICE) and toward battery-powered vehicles. Between 2021 and 2025, Volkswagen has set aside $86.4 billion to advance future technologies, accounting for half of the company’s overall investments. “By 2030, the globe of mobility will have altered significantly, I would argue more than ever,” Volkswagen Chief Executive Officer Herbert Diess informed CNBC’s, Annette Weisbach.

“Cars are moving closer to autonomy; many cars will be able to drive themselves. We will have a large number of electric vehicles. Mobility as a utility will grow in popularity.” Volkswagen also revealed that it is working on 3 software platforms to create a single platform that can be utilized across all Volkswagen Group vehicles by 2025. Software could become a key source of revenue for the auto industry by 2030, according to developers of the technology, with upwards to 40 million vehicles projected to run on the Group’s software infrastructure during the next decade.

CARIAD, a subsidiary of Volkswagen, is now working on software platforms that will include features such as a single infotainment system as well as the ability to provide automobile steering controls. Volkswagen declared that it would develop a “controlled battery supply chain,” creating a single universal battery format and establishing six giga plants across Europe by 2030 in an effort to expand its electric vehicle portfolio.

Northvolt will run the very first factory in Skellefte, Sweden, which is slated to start producing in 2023. Volkswagen will build a second Giga plant in Salzgitter, Germany, collaborating with Chinese cell expert Gotion High-Tech, with manufacturing set to begin in 2025. In an interview with CNBC, Diess emphasized the massive commitment that all carmakers are doing to transition to electric vehicles.

“Batteries may be a constant restriction for the expansion of electric vehicles within the next five to ten years,” he stated, adding lithium and nickel extraction as well. “Because the lead periods are so long. We require so much power and cell production… [There is] a massive supply chain that must be established over the next several years, and this will, and maybe will, cause some constraints,” he said.

Volkswagen’s remarks on Tuesday were part of its 2030 plan, which comes on top of the European Union’s expected presentation of a slew of environmental rules. The automaker has already started selling all-electric automobiles. The company’s wholly electric ID.3 version sold out in its presale in 2019.

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