Swedish automaker Volvo Cars expects to generate half of all sales annually from fully electric cars by 2025, with one third of all cars sold to be autonomous driving cars.
The company said that half of its driverless cars will be available via its subscription service, with an aim to link more than 5 million direct consumer relationships by the middle of the next decade.
The plans are expected to add new source of recurring income for the company. It will also offer the company far greater potential to develop other services to customers.
From the financial side, the company aims to generate high levels of profitability in line with other premium car makers, which will be driven by increased sales and revenues across all three global sales regions.
The company also aims to supply vehicles to the emerging new segment of autonomous ride-hailing companies.
It aims to drive its financial performance in the future through industrial synergies generated with its affiliated partner companies.
Volvo Cars president and CEO Hakan Samuelsson said: “Our customers’ expectations are changing rapidly. This means that Volvo Cars is also changing rapidly. These initiatives will help transform Volvo from being purely a car company to being a direct consumer services provider."
The company expects to benefit from lower procurement costs, shared development costs and economies of scale along with its new electric car brand Polestar and LYNK & Co, another car brand in which it has a 30% stake.
Samuelsson said: “This paves the way for Volvo Cars to continue growing fast into the middle of the next decade. The company has been transformed since 2010 into a global premium car company. Now it is time for this transformation to be turned into a period of sustained profitability in line with other premium brands.”
