Volvo expects one-third of all its cars sold to be self-driving vehicles by 2025

Volvo expects one-third of all its cars sold to be self-driving vehicles by 2025

On Thursday, Volvo Car Corporation’s President and CEO Hakan Samuelson said in a release that the automaker expects that one-third of all its cars sold will self-driving vehicles by year 2025. Volvo has been pushing ahead with impressive technologies in electric and self-driving segment.

Previously, Volvo had announced it is aiming for pure electric vehicles to account for one-half of its car sales by the middle of next decade. The automaker had also said in a 2017 announcement that it plans to electrify all its new vehicle models -- either as a hybrid, plug-in hybrid or full battery-electric -- from 2019 onwards.

In the Thursday release, Samuelson also said that Volvo is hopeful that 50% of all its cars will be available via its newly-launched subscription service called ‘Care by Volvo’ by 2025. The automaker expects the new subscription service to help it build more than 5 million direct consumer relationships by the mentioned timeline.

According to Volvo, the recently announced initiatives will pave the way for a significant transformation in terms of how the company connects to the customers. In addition, the initiatives will also enable Volvo to develop new connected services for consumers, as well as generate “premium level profitability” similar to some of the other luxury automakers.

Towards that end, Samuelson specifically said in the release: “These initiatives will help transform Volvo from being purely a car company to being a direct consumer services provider.”

After software as a service (SAAS), infrastructure as a service and many other similar business models, maybe it is time for mobility as a service.