The electric car market is a growing sector due to customer interest in efficient, green and alternative energy vehicles. During the 2017 auto show in L.A., Volkswagen announced plans to start moving into the sector with the intent to start selling electric Volkswagen luxury cars. Their plan takes a long-term approach, but it raises interesting opportunities for the future of the company.
Electric Volkswagen Luxury Cars Becoming a Thing
Expectations for Electric Vehicles from Volkswagen
Volkswagen luxury cars are taking a turn from the traditional designs and use of gas to power the vehicle. They are planning to move into the electric market by building electric luxury vehicles.
Although the company announced plans for completely electric vehicles, they are clear that the cars will not be available until 2019 or 2020. Their designs are focused on driving via electricity rather than gas. They also want to ensure that the vehicles have autonomous driving capabilities. Due to the complexity of the plans, Volkswagen does not expect the vehicles to start hitting the market or reaching the showroom floor until 2019.
Their goal is three different vehicles: the I.D. Hatchback, the I.D. Mini-Bus, and the I.D. Crozz Crossover. The three designs will act at the first step toward a future without gas-powered vehicles as the company looks toward new technology and advances to improve on their current designs.
Why the Changes Matter
Volkswagen is investing around $12 billion to build electric vehicles in China https://t.co/M8QuxqmBDM
— The Wall Street Journal (@WSJ) December 1, 2017
The reasons the changes matter in relation to Volkswagen luxury cars ultimately relates to the emerging market for electric vehicles. Customers want more options and variety when they decide to opt for an electric car. Since the company has previously faced scandals and needs a fresh start, they are taking the company in a completely new direction with their plans for electric vehicles.
While the impact on the company will not be obvious until the vehicles are released for purchase, the changes also matter in regards to the future of the overall industry. Luxury vehicles are moving away from traditional designs and the use of fossil fuels. As more brands start building luxury vehicles with electric driving capabilities, fewer consumers will use gas-powered vehicles. Ultimately, it will have a positive impact in relation to greenhouse gases and the use transportation industry.
Costs Associated with Electric Cars
— Jonathan Carter (@jonathanrcarter) November 27, 2016
Although Volkswagen luxury cars provide a fun experience for drivers, the cost of the new technology will have an impact on the cost of the vehicle. Volkswagen expects to pay roughly $40 billion on their investment into the electric car market. They are setting a lofty goal of becoming the largest producer of electric vehicles by 2025, so they are putting a large amount of funds into their project.
Representatives of the company admit that they have work ahead to reach their goals, but they also explain that SUV sales assist with the costs and help fund their research into new technology for electric vehicles. They expect to have a large share of the electric market by 2025 due to their plans to build electric vehicles within all of their luxury brands, including Porsche and Audi.
Competition for the Company
— Volkswagen News (@vwpress_en) November 29, 2017
Setting the goal of becoming the largest company in the electric car market by 2025 is a difficult task. The company has not yet released any electric vehicles, but they plan to release a total of 30 different designs through Volkswagen, Porsche, Audi and their other brands. The challenge is overcoming the competition, including companies that already produce popular electric vehicles.
The obvious competition in the electric market is Tesla. The company only produces electric cars and has gained popularity due to the sleek designs and the technology involved in the development of the vehicles. Volkswagen luxury cars will also compete with other major car brands who also plan to produce electric cars. New start-up companies may also raise concerns for the company in relation to reaching their goals.
Fun Designs and Great Expectations
Although the company is still working on their electric cars, they are expected to have a fun design that fits the company’s brand. They also expect the vehicles to have a 300-mile range and a 111 kWh battery, which is an improvement on early electric cars.
Watch this video from Top Cars to learn more about the future of these Volkswagen luxury cars:
Luxury cars must adapt to keep up with consumer demands. With the growing interest in electric cars, more companies will start developing their technology and designs. Volkswagen is already starting their designs and plans to release the vehicles by 2019 and 2020. Their ambitious goal shows a clear path for future vehicles and the long-term changes in car technology.
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