Move Over Tesla? Volkswagen Says It's Out To Become Global Leader In EVs

Volkswagen AG VWAGY, one of the legacy automakers that's arguably better leveraged to transitioning to electric vehicles, announced Tuesday a "New Auto" strategy that will run through 2030.

Volkswagen Aims For Pole Position In EVs: Announcing plans to transform into a software-driven mobility company, German automaker Volkswagen said it has set a strategic target to become the global leader in EVs and said it's on track to do so.  

"Based on software, the next much more radical change is the transition towards much safer, smarter and finally autonomous cars. That means for us: Technology, speed and scale will matter more than today. The future of cars will be bright!" said CEO Herbert Diess.

The company targets reducing its carbon footprint per car by 30% over its lifecycle compared to levels in 2018, in line with the Paris Agreement.

The share of battery EVs is likely to increase to 50% of the total new vehicle sales by 2030, and 100% electrification of all new Group vehicles in major markets is targeted by 2040, Volkswagen said. By 2050, the automaker expects to be fully climate neutral.

Volkswagen raised its operating return on sales for 2025 from the original range of 7%-8% to 8%-9%.

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VW Emphasizes Battery Tech, Charging Infrastructure: Volkswagen said it plans to establish a controlled battery supply chain by setting up new partnerships.

The company said it plans to introduce one unified battery cell format with up to 50% cost reduction and up to 80% use cases by 2030. Six giga factories in Europe with a total production capacity of 240 GWh by 2030 will help to secure battery supply, the company added.

VW's Autonomous Driving Plan: Together with its strategic partner ARGO AI, Volkswagen is developing a self-driving system which will enable it to offer completely new mobility services and autonomous transport services.

The company is aiming for a significant market share and additional revenue streams from this avenue.

VW To Focus On China, Europe, North America: China, the company said, is expected to play a crucial role for the success of Volkswagen's "New Auto" strategy.

Volkswagen also said it is bringing a wide range of highly attractive BEVs tailored to the U.S. market, like the successful ID.4 and the upcoming iconic ID. BUZZ1.

At last check, Volkswagen shares were down 1.88% to $33.75.

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Photo: Volkswagen CEO Herbert Diess. Courtesy photo.