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Volvo officials say it is expected that by 2025, the profit margin of Volvo electric cars will be the same as that of internal combustion engines.

In the future, Volvo will spend 5% of its annual revenue on self-driving cars and electric cars, and has promised to put five pure electric vehicles on the market in the next few years. It is understood that at present, many automobile companies are seeking the transformation of automobile electrification, and invest a lot of manpower and material resources, while the rising cost of spare parts and other factors will lead to limited market share in the first few years, thus affecting profit margins. But with lower costs for components such as batteries and lower profit margins for traditional cars, this will help carmakers turn to electric vehicles.

Volvo's previously released Polestar 2 can compete with Tesla's Model 3. The company also plans to launch a Volvo-branded compact electric SUV this year, aiming to generate 50 per cent of sales from pure electric vehicles by 2025.

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