German automotive giant, Volkswagen has reportedly updated its long-term profitability goal which indicates its growing confidence in handling the transition to electric and self-driving vehicles. Unveiling its plan until 2030, VW stated that half of its global vehicle sales would be electric as it seeks to join rivals in setting high goals to shift away from combustion engines.
Notably, the goal comes in line with the major climate policy announcement by the European Union recently, which could include a de facto ban on petrol vehicles by 2035. Volkswagen intends to surpass Tesla as the global electric vehicle (EV) manufacturer by 2025, however, its battery electric vehicles accounted for just 3% of global sales in 2020.
VW’s Chief Executive, Herbert Diess, whose contract was recently extended till 2025, expressed his views stating that the company has set a strategic goal for themselves to become the global market leader in electric vehicles, and they are well on their mission.
After announcing exceptional first-half earnings, Volkswagen stated that the robust performance of its existing company would help fund 150 billion euros ($178 billion) in investments in sectors such as batteries and software by 2025.
It also added that interconnections between technologies and brands, which range from low-cost Seats and Skodas to elevated Audis and Porsches, gave it the confidence to boost its operating return on sales objective from 7-8 per cent to 8-9 per cent for 2025.
Carmakers have set several goals for the future of electric vehicles. For example, recently, Stellantis reported that it wants more than 70% sales in Europe and over 40% in the United States of low-emission vehicles by 2030. This includes both hybrid and all-electric battery vehicles.
Volkswagen meanwhile states that it would stop selling petrol vehicles in Europe by 2035, and in China and the United States a year later due to its transition to electric vehicles.