Volkswagen to spend USD 23 billion to offer electric options for all its models by 2023

Volkswagen AG is once again making it to the headlines, however, this time it’s not because of its emissions-cheating scandal, but an attempt to scramble out from its own shadow of fraud. The world’s largest automaker has been indicating its shift to electric cars and plans to spend over USD 23 billion in producing electric vehicles by 2030. In addition, resembling the move made by Mercedes-Benz, Volkswagen also plans to have a zero-emission version of each of its existing 300 models.

VW is the latest automaker to jump on the EV bandwagon and its effort to recover from its own toxic vapors for cheating are likely to be the most ambitious one witnessed in the automotive industry. Apparently, the scandal had set off a backlash that led the consumers to turn away from the technology amid the concerns over pollution and driving bans. Such circumstances further prompted the company to push itself into electric car market.

As a part of this move, VW plans to offer 80 new electric vehicles across all its sub-brands and groups by 2025, which include Bugatti, Bentley, Audi, and the VW brand itself.

Prior to the scandal, sources revealed that the German auto giant was rather uncertain about launching electric cars because of its high cost and limited range. Diesel was a much convenient choice for the company as it emits about a fifth proportion of carbon dioxide than gasoline engines. However, VW needed to surge up its slumping sales of diesel models and has thus accelerated its electric-vehicle plans.

Meanwhile, the move from VW, Mercedes, BMW and other carmakers come as a part of numerous countries announcing their initiatives to phase-out diesel and petrol cars, as a part of the effort to reduce carbon emission and pollution. Following the lead of UK and France, China became the latest country to publicize its plans to ban fossil-fuel powered vehicles. This move by China, the world’s largest auto market, is certain to fast-track the global shift to electrified vehicles.

Underscoring the enormity of the seismic shift taking place in the automotive industry, VW is also set to challenge pioneer Tesla in creating mass market for electric vehicles. Tesla has already started its mass production of lithium-ion battery cell at its own gigafactory, which aims for annual production capacity of 35 gigawatts-hours. Considering its vastly increased fleet of electric cars, VW states that it will need the capacity equivalent of at least four gigafactories for battery cells by 2025. The carmaker has already committed USD 23 billion and is further likely to invest USD 55 billion toward purchasing batteries to power the electric vehicles.

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Ojaswita Kutepatil

Ojaswita Kutepatil develops content for Market Size Forecasters. A mechanical engineer by qualification, worked as a BDE and Technical Engineer before switching her profession to content writing. As an Associate Content writer, where she pens down write-ups pertaining to the market research industry...

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