Volkswagen just announced plans to rapidly increase production of electric vehicles in a move that could help shift the global auto market toward more environmentally-friendly vehicles.
The company is now targeting production of 22 million electric vehicles by 2028, a large uptick from its previous forecast of 15 million. Volkswagen is also considering entering the battery manufacturing business in Europe.
Volkswagen’s commitment to electric vehicles is consequential given the German automaker’s authority in the global market. According to Focus 2 Move, Volkswagen ranked as the world’s largest vehicle manufacturer in the world in 2018 with 10.4 million auto sales.
If other automakers follow Volkswagen’s lead in aggressively ramping up development and production of electric vehicles, the industry could really benefit. Sales of electric vehicles are growing, but they still only make up a small portion of the global market.
One of the main hurdles facing electric vehicles is cost since electric vehicles typically cost more than combustion engine vehicles. But mass production of electric vehicles by multiple automakers will help lower costs and encourage more consumers to enter the market.
It’s clear that the global auto industry is changing and consumers are becoming more aware of the environmental impact of combustion engine vehicles. But if auto manufacturers don’t start making large commitments to developing electric vehicles, it’s going to take a while for the industry to take off.
Volkswagen’s announcement – and if it’s able to pull off what it says – will help redeem the automaker after its 2015 emissions rigging scandal.