Volvo Cars aims for fully electric cars to make up 50% of its sales by 2025, the company has announced.

Volvo XC40 T5 Twin Engine plug-in hybrid

The announcement builds on Volvo Cars’ 2017 announcement to offer all new models released from 2019 with either a mild hybrid, plug-in hybrid or battery electric powertrain.

China factors in heavily for the company’s future plans, with the country being the single most important market for Volvo Cars at present, delivering a 23.3% Q1 sales increase, contributing to the company’s Q1 global sales growth of 14%. China is also the current world leading market for electrified cars.

“Last year we made a commitment to electrification in preparation for an era beyond the internal combustion engine,” said Håkan Samuelsson, president and CEO of Volvo Cars. “Today we reinforce and expand that commitment in the world’s leading market for electrified cars. China’s electric future is Volvo Cars’ electric future.”

Volvo Cars’ three factories in China – Luqiao, Chengdu and Daqing – will soon produce either plug-in hybrid or battery electric cars. The plants currently produce the S90 and S90L T8 Twin Engine, soon to be joined by the XC60 T8 Twin Engine.

Volvo also chose Beijing as the location for the first public appearance of the XC40 T5 plug-in hybrid.