The world is ruled by the law of supply and demand. It's a simple law yet it encompasses almost all industries on earth. Volvo Cars, knowing that demand is surging for its all-electric Recharge vehicles (including the XC40 Recharge), is ensuring that supply can keep up by tripling its electric production capacity at its manufacturing facilities in Ghent, Belgium.

Expanding Production To Cater To Growing Demand

Volvo Cars' manufacturing plant in Ghent
Via: Volvo Cars

Volvo Cars is seeing a strong demand for its Recharge line-up of chargeable cars. In fact, the share of sales of Recharge models -- with a fully electric or plug-in hybrid powertrain -- more than doubled in 2020 compared to 2019. With solid growth in electric car sales, Volvo wanted to make sure that it can produce enough model to keep up with the demand.

According to Swedish carmaker, the electric car capacity at its Ghent facility will more than triple -- compared to current levels -- in 2022. This would mean that Recharge models would account for around 60% of the site's total production capacity next year.

Second Fully Electric Volvo To Commence Production This Year

Battery assembly, Ghent
Via Volvo Cars

However, Ghent factory's electric expansion is just the start of the electrification game at Volvo Cars. It's the first of Volvo Cars' global manufacturing network to produce fully electric cars. But that production capability will soon be implemented at Volvo's other manufacturing facilities.

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Volvo Cars' Ghent facility currently produces the carmaker's first fully electric car, the XC40 Recharge, as well as a plug-in hybrid variant of the SUV. The Swedish plant has already laid plans to build its second fully electric vehicle. This new Recharge model – underpinned by the CMA modular vehicle architecture – will go into production later this 2021.

Aggressive EV Plan Calls For Aggressive Spending

Battery assembly, Ghent
Via Volvo Cars

Eyeing to becoming a premium electric carmaker in the next few years, Volvo plans an aggressive EV rollout. In fact, the company sees EVs accounting for half of its global sales by 2025, with hybrids taking up the other half.

To do so, Volvo is investing around SEK700 million ($85 million) to enable electric motor assembly at its Skövde powertrain plant in Sweden to set up its own e-motor production by 2025. It's also pouring money to develop new e-motors for its next-generation EVs.

Source: Volvo Cars

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