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According to media reports, a Volvo spokesman recently said that the company plans to build a third plant in Europe between 2025 and 2026 to achieve its target of producing 1.2 million vehicles a year. At present, Volvo has two plants in Europe, in Sweden and Belgium, which produce 800000 vehicles a year, and a Volvo spokesman said he hopes to further expand car production.

With the continuous rise of new energy vehicles around the world, many car companies have also advanced the electric layout. According to relevant data, the market share of new energy vehicles in China has exceeded 10%. The Chinese market has become the key to the success of the transformation of car companies, and Volvo's electrification is at hand.

In October, Volvo announced its official listing on Sweden's Stockholm Stock Exchange, raising 18.5 billion yuan, or about $2.87 billion, in its IPO. On the listing, Volvo CEO Hanken Samuelson has said, "the decision to advance IPO will help to enhance our brand and accelerate the transformation strategy of fully electrification, building a direct user model and achieving a higher level of security. This will help the company achieve continuous growth in sales, revenue and profitability. " According to Volvo's prospectus, 70% of the money raised by Volvo will be used for electrified transformation.

In fact, with regard to Volvo's electrification transformation as early as March this year, Volvo further refined its comprehensive electrification strategy and proposed to achieve full electrification in 2025. Volvo pure electric models will account for 50% of sales by 2025, and the rest are hybrid models. By 2030, Volvo will become a 100% pure electric car company.

It is not difficult to see that Volvo in 11 years, after Geely's acquisition to the current independent listing, its market value has also skyrocketed, and its sales figures have also increased, adding strength to Volvo's electric intelligent layout. According to relevant data, Volvo sold 705500 cars worldwide in 2019, an increase of 9.8% over the same period last year. Volvo sold 661700 cars worldwide in 2020 and accumulated 530600 vehicles in the first three quarters of 2021, up 17.6 per cent from a year earlier, including 132600 in China, up 17.1 per cent from a year earlier.

However, as for Volvo's plan to expand its production capacity, industry insiders said: after the rise of new car-building forces such as Tesla, Ulai, ideal and Xiaopeng Automobile, Volvo's transformation needs more financial support. At the same time, in the context of the transformation of traditional car companies, whether expanding production capacity can achieve product planning and sales targets to stabilize capital confidence will also become a new challenge for Volvo.

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