Sept 5 (Reuters) - Swedish automaker Volvo Cars

expects to outgrow the premium car market until

2026, it said on Thursday, but lowered its profitability target

for that year and scrapped its sales goal.

The group, which is majority-owned by China's Geely, lowered

its target for operating profit margin excluding joint ventures

and associates to 7-8% from above 8% and scrapped a sales goal

of 550-600 billion Swedish crowns ($53.5-58.4 billion).

It cited "increased complexity especially in relation to

global trade and tariffs".

Major automakers have seen slowing demand for EVs due partly

to a lack of affordable models and the slow roll-out of charging

points, while also bracing for the effects of European tariffs

on electric cars made in China.

Volvo Cars said separately that it will use a single

software system backed by powerful chips from Nvidia ( NVDA )

for all future models and will rely on "megacastings" to cut

costs for electric cars.

In releases ahead of a planned investor event in Gothenburg,

Volvo said that starting with its flagship electric EX90 model -

which the Swedish automaker will begin delivering to customers

this month - it will have a single "technology stack" for all

car models.

Nvidia's ( NVDA ) DRIVE Orin system-on-a-chip will help Volvo build

better safety systems for its cars and constantly improve

vehicles in circulation via over-the-air updates, Chief

Engineering & Technology Officer Anders Bell told Reuters.

Bell also said Volvo will rely on "megacastings", which like

gigacasting use massive presses to make large single aluminium

pieces of vehicle underbodies.

Using those large single pieces lowers costs as they replace

many individual pieces that need to be welded together.

Bell said that through the use of megacasting, Volvo will

also be able to greatly increase the use of recycled aluminium

and reduce emissions throughout its supply chain.

($1 = 10.2815 Swedish crowns)