Volkswagen ‘New Auto’ strategy predicts near 100 per cent EV sales by 2040

Volkswagen’s “New Auto” business strategy will introduce new tech and make electric vehicles more profitable across the Group’s brands

VW

The Volkswagen Group has announced a new business plan called New Auto, which will see the firm through to 2030.

The plan mainly focuses on how the group will balance the mix between battery electric vehicles and internal combustion powered cars over the next decade. The VW Group says that the internal combustion engine market will shrink by more than 20 percent over the next decade, with EVs expected to overtake ICEs as the leading technology as they reach price parity. 

Volkswagen Group says that electric cars will account for around 50 percent of its sales by 2030, and will approach 100 per cent by 2040. 

Volkswagen will start by expanding and simplifying electric vehicle production through a more straightforward platform strategy, which is expected to boost sales returns by around one percent – a big deal in a company as vast as the Volkswagen Group..

The Volkswagen Group’s hardware and software developments for the EV era will rest on its new Scalable Systems Platform (SSP). It’ll be launched in 2026, becoming the successor to Volkswagen’s combustion-engined MQB, MSB and MLB platforms in the short-term.

Eventually, the underpinnings will also replace the electric-only MEB and PPE platforms, moving all of the Volkswagen Group’s EVs onto one architecture. The firm expects to produce more than 40 million vehicles on SSP over its lifetime and, like the MEB platform, it will be open to use for other car manufacturers.

Volkswagen is also researching methods to reduce complexity in its battery packs. The company has said it will introduce one common battery cell format across all of its vehicles, which has the potential to slash costs by 50 percent by 2030. Energy density will be determined by the chemical composition of the pack, rather than its physical size. 

As an aside, Volkswagen plans to secure its battery supply by launching six battery factories across Europe, with a production capacity of 240GWh forecast by 2030. For environmental as well as cost reasons, the Group will also introduce a closed loop life cycle for its battery cells, handling everything from manufacturing to recycling.

The first new gigafactory will be managed by Northvolt in Sweden, while the second will be in Salzgitter, Germany. Volkswagen has indicated that a third could be built in Spain, to directly supply the company’s planned production facility for its upcoming small BEV family, which is expected to start in 2025.

In terms of software upgrades, Volkswagen will develop a new vehicle operating system by 2025 which will be common across its entire range of vehicles and offer support for Level 4 autonomous driving, meaning the driver can fully hand over the task of driving to the car.

Alongside its production and technology announcements, the Volkswagen Group also reaffirmed its climate targets. By 2030, the company says it will reduce the climate footprint of each of its cars by 30 percent over its lifecycle, compared to 2018.

Now read about Volkswagen’s planned entry-level EV, the ID.1 supermini

Recommended

Volkswagen ID. models to get over-the-air software updates
Volkswagen ID.3
Volkswagen

Volkswagen ID. models to get over-the-air software updates

Volkswagen shifts towards a software-based business model, with improved safety and additional features enabled through updates
13 Sep 2021
2023 Volkswagen Aero B: new electric Passat equivalent spied
Volkswagen Aero B - front
Volkswagen

2023 Volkswagen Aero B: new electric Passat equivalent spied

Volkswagen will soon make its ID.Vizzion concept a reality, which could become the longest-range MEB model in the firm’s electric line-up
10 Sep 2021
New Volkswagen ID. Life wows at Munich Motor Show
Volkswagen ID Life - Munich front
Volkswagen

New Volkswagen ID. Life wows at Munich Motor Show

The new Volkswagen ID. Life concept previews a future affordable electric car that will sit below the ID.3 in the brand's line-up
7 Sep 2021
New Volkswagen ID.2 to kick-start brand’s push into small electric cars
Volkswagen ID.2 - front (watermarked)
Volkswagen

New Volkswagen ID.2 to kick-start brand’s push into small electric cars

The new Volkswagen ID.2 baby electric SUV will be part of an extended ID. line-up, and our exclusive images preview how it could look
6 Aug 2021

Most Popular

Friends reunited: buying back a Porsche 911
Porsche 911
Porsche 911 Coupe

Friends reunited: buying back a Porsche 911

How perfect timing led a Porsche 911 fanatic to buy back his old car
14 Oct 2021
New Ford Focus unveiled with 2021 facelift and tech updates
Ford Focus ST Line - front
Ford Focus Hatchback

New Ford Focus unveiled with 2021 facelift and tech updates

Ford has given the Focus hatchback a refresh for 2021, with a new design and an improved infotainment suite
14 Oct 2021
New Skoda Kodiaq SportLine 2021 review
Skoda Kodiaq SportLine - front
Skoda Kodiaq SUV

New Skoda Kodiaq SportLine 2021 review

The seven-seat Skoda Kodiaq SUV gets styling tweaks and tech upgrades in facelift
15 Oct 2021