How rapidly to make the switch is another question, and the one that is driving divergent strategies.
Ryan Felton, of the Wall Street Journal, reports traditional auto makers have pledged to transform their model lineups to EVs, but timelines vary.
Focused mostly on the profits, car makers do not want to get ahead of consumer demand on EV rollout. That could inflate their costs and hurt sales of ICE-powered vehicles, profits from which are needed to develop electric vehicles.
However, they know that lagging behind rivals would harm their chances to establish themselves in a major growth area over the next decades.
“We don’t want to risk missing the market,” Volvo Car AB Chief Executive Jim Rowan said during an earnings call this month. The Swedish auto maker is among those seeking to rapidly evolve into an electric-only manufacturer, saying it will offer an all-EV lineup by 2030. Last year, 11% of Volvo’s vehicle sales were electric.