Volvo Races To Catch Up With Demand For Hybrids
Chinese-owned European carmaker Volvo has admitted it seriously underestimated demand for its expanding range of electrified models.
Company CEO Hakan Samuelsson said that “by the end of the year we should be up to 20 to 25 percent” when it came to sales.
Given the massive increase in demand, Samuelsson said that the company was “ramping up all the components” needed to produce plug-in variants of those models, with current demand outstripping its capacity to source batteries, electric motors and other components that are pretty important if you want to sell a hybrid version of an already popular model.
Samuelsson said the company was not pleased with its inability to produce enough hybrid models, saying that they had “underestimated the demand.”
“We are tripling the capacity from what we had about a year ago to where we will be at the end of this year,” he said.
Volvo sold 26,800 plug-in hybrid variants in Europe in 2018, up from a paltry 16,000 in 2017.
By 2021, the company expects more than a quarter of all sales world wide to be from plug-in hybrids, and by 2025 it projects half of its models will be hybrids.