Volvo Cars expects subscription contracts to account for half of annual retail volumes by the mid-2020s, as well as for electric and autonomous vehicles to generate the vast majority of sales by the same time.

The company added it would take advantage of close links with its Polestar and partially-owned Lynk & Co. brands to improve procurement and development costs.

Volvo [will go] from being purely a car company to being a direct consumer services provider,” said Hakan Samuelsson, president and chief executive.

The carmaker added it wants electric vehicles (EVs) to account for half of sales and autonomous vehicles (AVs) for a third by the next decade.

Volvo currently offers car subscription packages on the XC40 and V60 in selected geographical markets, which include the Greater London area in the UK.

The company also intends digital subscription to be Polestar’s main route to market, as opposed to physical retail, when the performance brand launches in the UK in 2019.

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On the electrification front, Volvo revealed ambitious targets over the last year. Starting next year, it will give the option of a hybrid or fully-electric powertrain on all models.

It recently added it will stop developing diesel engines, opting instead on petrol for hybrid cars.

In the AV space, Volvo has been collaborating with Uber, and set up the Zenuity joint venture with safety supplier Autoliv and chipmaker Nvidia.

Last year, the carmaker received a €245m (£214m) loan from the European Investment Bank, for research on AVs.