Swedish heavy vehicle manufacturer Volvo Group (OTC: VLVLY) could be one of the early birds to launch heavy-duty trucks entirely powered by batteries, Financial Times reports.

With a range of 300kms, Volvo electric trucks will be open for pre-sales in 2021 and production kicking off in 2022.

Apart from electric trucks, Volvo’s portfolio also includes battery-powered construction equipment like hook lift trucks and concrete mixers.

What Happened: In its October sales update, Volvo disclosed a 7.1% growth in car sales globally. Despite a 4.6% drop in sales for January-October 2020, the European markets accounted for 43% revenue share, and China contributed to 25.6% of revenues.

Volvo is targeting electric models to generate 50% of its European truck sales by 2030.

VolvoTrucks Head of Product and Vehicle Sales, Jessica Sandstrom, said that it was a big step in adopting large commercial electric vehicles — Financial Times.

Why Does It Matter: Some of Volvo’s closes market peers in this business segment include the German company Daimler AG (OTC: DMLRY), the Chinese carmaker BYD Co Ltd (OTC: BYDDF), the Henrik Fisker founded Fisker Inc (NYSE: FSR), Ohio based Lordstown Motors Corporation (NASDAQ: RIDE) and the Trevor Milton owned Nikola Corporation (NASDAQ: NKLA).

Volvo Trucks President Roger Alm said that the company wanted the total cost of ownership of an electric truck to be as comparable as possible to diesel trucks.

He added that Volvo is hoping for society to pay more for deliveries done with climate-friendly trucks.

Price Movement: Volvo ADR gained 1.32% to close at $20.70 on Wednesday.

Related Link: Ford Does Not Intend To Build Electric Super-Duty Trucks, Says Top Executive

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