All Volvo cars will be fully electric by 2030, the Swedish car maker said on Tuesday as it rolled out its second electric vehicle, the C40 Recharge.
The Gothenburg-based car maker, which is owned by China's Zhejiang Geely Holding Group, aims to phase out models in its global portfolio with an internal combustion engine, including hybrids, in the next 10 years.
By 2025, EVs will constitute 50 per cent of global sales as the company aims to reduce its carbon footprint per car by 40 per cent by the same year, Volvo said.
Restrictive emissions and fuel-efficiency regulations have forced car manufacturers to focus on vehicles that are more environmentally friendly. Last month, Jaguar Land Rover said its luxury brand Jaguar will go all-electric by 2025 as it aims to become a net-zero carbon business by 2039.
In January, General Motors, the largest US car maker, said it plans to eliminate petrol and diesel light-duty cars, including SUVs, by 2035. South Korean car maker Kia is planning to launch its first EV in the first quarter of this year, while Germany's Volkswagen, the second-largest car maker by sales last year, plans to unveil about 70 new electric models by 2028.
Volvo's EV ambitions build on the expectation that legislation as well as a rapid expansion of accessible high-quality charging infrastructure will accelerate consumer acceptance of EVs, it added.
“To remain successful, we need profitable growth … so instead of investing in a shrinking business, we choose to invest in the future – electric and online,” said Hakan Samuelsson, the company’s chief executive.
“We are fully focused on becoming a leader in the fast-growing premium electric segment.”
Volvo started production of its first fully electric car, the XC40 Recharge, in October last year.
The company said it will roll out “several additional” electric models in the coming years but did not specify the exact number.
“The C40 Recharge represents the future of Volvo and shows where we are going … there is no long-term future for cars with an internal combustion engine,” Henrik Green, chief technology officer at Volvo, said.
The transition will help the company to meet customers’ expectations and “be a part of the solution when it comes to fighting climate change”, he added.
Volvo's announcement follows strong earnings in the second half of last year. It reported its best-ever second-half profit and sales volumes.
During the six-month period, revenue increased 4.9 per cent annually to SEK151 billion ($18.2bn). Its operating profit rose 8.2 per cent to SEK9.5bn.
The company also reported its best ever January, after sales rose 30.2 per cent to 59,588 cars.