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

Sporty Volkswagen 'GTX' badge to appear on more electric ID models
Volkswagen GTX
Volkswagen

Sporty Volkswagen 'GTX' badge to appear on more electric ID models

Volkswagen wants to establish GTX as a new high-performance badge for its all-electric lineup
29 Apr 2021
Volkswagen aims to be carbon neutral by 2050 ‘at the latest’
Volkswagen Way to Zero
Volkswagen

Volkswagen aims to be carbon neutral by 2050 ‘at the latest’

New initiatives include the construction of VW solar and wind farms and the usage of green energy at global factories - but not at Chinese plants
29 Apr 2021
New Volkswagen ID.5 coupe-SUV spotted on the road
Volkswagen ID.5 - spyshot 2
Volkswagen

New Volkswagen ID.5 coupe-SUV spotted on the road

The new Volkswagen ID.5 coupe-SUV will break cover later this year, with an expected range of more than 300 miles
19 Apr 2021
Volkswagen ID.6 seven-seat electric SUV for China revealed
Volkswagen ID.6
Volkswagen

Volkswagen ID.6 seven-seat electric SUV for China revealed

New VW ID.6 is similar in size to the Touareg and boasts a third row of seats, but won’t be coming to Europe
17 Apr 2021

Most Popular

New 2021 Volkswagen Taigo coupe-SUV breaks cover
Volkswagen Taigo R-Line - front
Volkswagen Taigo

New 2021 Volkswagen Taigo coupe-SUV breaks cover

The new VW Taigo is a sportier, more aggressive looking version of the brand’s T-Cross and is aimed at lifestyle buyers
29 Jul 2021
New Bowler Defender Challenge review
Bowler Defender Challenge - front
Land Rover Defender

New Bowler Defender Challenge review

The new Defender Challenge is the first Bowler under JLR ownership, and it’s a cracker
28 Jul 2021
New 2021 Kia EV6 boasts up to 328 miles of range
Kia EV6 - front
Kia EV6

New 2021 Kia EV6 boasts up to 328 miles of range

Kia reveals more specs for its bespoke electric car, with the EV6 offering long range and an 18-minute 80 per cent rapid recharge time
21 Jul 2021