Volvo Cars plans to introduce 13 completely new car models by the end of 2030. The Swedish automaker announced the ambitious product strategy during its Capital Markets Day. According to the company’s plans, seven new models will be developed for Western markets, while six will be aimed at customers in China.
Volvo Cars intends to focus on adapting its vehicles to regional market requirements, expanding electrification and strengthening cooperation with China’s Geely Group. Another important goal is to increase the company’s operating margin to 8%. In the second quarter of this year, the figure was just 1.1%.
Volvo Cars expects to improve profitability through more efficient production and significantly lower investment costs per vehicle for many of its future models. The company is also continuing to invest in hybrid technology. Volvo Cars has announced updated hybrid versions of the XC60 and XC90, featuring a longer electric driving range.
These models will be available in Europe and the United States. The automaker believes that demand for hybrid vehicles will remain strong well into the 2030s, even as the global automotive industry gradually moves toward fully electric cars. Volvo Cars currently employs around 42,600 people worldwide.
A significant part of its production, research and development activities is based in Gothenburg, Sweden. The company also has major operations in Belgium, China and the United States. An interesting aspect of Volvo Cars’ strategy is its attempt to balance global electrification with the different needs of individual markets.
While some regions are rapidly moving toward fully electric vehicles, others are still showing strong demand for hybrids and conventional powertrains. At the same time, investors remain cautious. Since the beginning of the year, Volvo Cars shares listed on the Stockholm Stock Exchange have fallen by around 40%.
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