From 2019, all cars produced by Volvo will have an electric motor,
marking the end of cars that only have an internal combustion engine.
The announcement made in early July this year,
stated that electrification is at the core of our future business.
Volvo Cars Explorers is in Shanghai, China,
right in the heart of the largest electric vehicle market in the world.
The explorers' mission here is to take a closer look at the market
and learn what makes Volvo Cars well prepared
to meet a rising global demand for electric vehicles.
Mr Shui Fang is going to tell us about the electric vehicles market in China.
Is the Chinese public interested in electric vehicles?
Yes. They did a study of Chinese customers compared to other countries,
and we have a high percentage of people prepared to accept electric vehicles.
There are two factors, and one is the environment.
In some Chinese cities, the environment is not very good because of pollution.
And additionally, when you have electric vehicles,
the cost is very low compared to conventional gasoline vehicles.
That's why customers like them.
Data by the International Energy Agency
shows there are now over 2 million fully electric vehicles
and plug-in hybrids in the world.
The market is driven by stricter legislation, changing customer preferences
and last, but not least, lower prices.
So, if we're able to solve the price issue with electric vehicles,
is the infrastructure ready to handle the demand?
Yes. The infrastructure is currently one factor,
so the government is making big efforts to build charging ports.
Like the one behind.
In Shanghai, they are putting up 5,000 charging stations.
If that happens, the auto market would be even more popular.
When I heard that the electric vehicle market was as big as it is,
I saw there's a lot of opportunity.
But that means there are a lot of challenges ahead.
It's a big task to move the industry to electrification.
We're heading in the right direction. The process needs to start now.
Apart from the incentives that customers get from the government,
are people so concerned about the environment
that it would make them switch to electric vehicles?
Of course people want to pay less. That's understandable.
So if we can produce a car with a lower price...
But people are also concerned about the environment.
It is more sustainable for the society and everyone.
People would, if the price was acceptable,
or even higher, they would still want to drive electric vehicles.
Volvo has a commitment to sell a total of 1 million electrified cars
by 2025.
In 2019, the company will launch a pure electric car
to the market for the first time.
The model will be produced in China and exported globally.
Why is it important to do R&D on electric vehicles here in Shanghai?
Firstly, the Chinese market is the world's largest for electric vehicles.
And the customers on this market have some special requirements.
So if we were to do research and development here,
we'd be closer to our customers.
We could develop what people like.
We have different responsibilities,
so the Shanghai team probably does more localisation
and, for example, the Gothenburg team focuses more on product development.
So, it's a joint effort.
Besides China, the most important markets for electric vehicles
are Europe and China.
The very same as Volvo Cars three main sales regions.
This is one of the reasons why Volvo Cars are well prepared
for a maturing electric car market.
Another great advantage is our platforms.
Anton and Cherie meet R&D engineers Wang Chenchen and Liang Haibo.
I think it's good to have that sort of presence here, too.
Especially in the electrification R&D.
That's important, especially in China where they have pollution problems.
Electrified vehicles are going to be very important here in the future.
Wang Chenchen and Liang Haibo say that the SPA and CMA platforms
are vital for our electrified future,
since they both support plug-in and pure electric configuration.
The fact that the two platforms have so much in common
also makes work more effective.
Take the test and verification work.
We know how to do the testing for the SPA platform in China,
especially for the standards unique to China.
So, we know a lot from our experience of the SPA platform.
If we were to use the CMA platform in the future, it would be easier.
We would do the work much more efficiently.
The announcement Volvo Cars made this summer,
that all new Volvo cars from 2019 will have an electric motor, was historic.
I'm a new mother.
I want to create a greener world for my baby,
so I am very proud that I work here,
to produce a more environmental car.
In China, and especially Shanghai, we have a very big problem
with a lot of air pollution.
So, if we chose electrification vehicles in the future,
to maybe replace the current petrol vehicles,
maybe we can save Shanghai - and save China, too.
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