The Swedish car manufacturing firm, Volvo, has said it will phase out all car models with internal combustion engines by then, including hybrids, and sell only electric cars from 2030.
The carmaker is also planning to invest heavily in online sales and simplifying its products. It is trying to capitalise on the growing demand for electric cars, including in China, which is already one of its biggest markets.
Carmakers are also responding to pressure from governments around the world to beef up their electric car plans. New cars and vans powered wholly by petrol and diesel will not be sold in the UK from 2030, for example. Volvo’s chief technology officer, Henrik Green, said the company needed to switch focus:
“There is no long-term future for cars with an internal combustion engine.” Bjorn Annwall, head of Europe for Volvo, told the BBC’s Wake up to Money programme the plan fitted with both Volvo’s image and commercial interests.
“At Volvo, our customers expect high levels of us when it comes to human safety and they are starting to expect exactly the same thing when it comes to planetary safety, we aim to live up to that, it’s the right thing to do,” he said.
“The fully electric premium segment will be the fastest growing part of the automotive market, so it’s very natural to focus on that.”
Its online push means customers will be able to order cars to their own specification online, but also through a dealership. Volvo will not be investing in cars with hydrogen fuel cells, as it does not think there will be enough demand from customers.
There is also a question mark over hydrogen’s availability in comparison with charging points for electric cars, a spokesman said. Volvo previously announced that by 2025, half of its sales would be fully electric, with the rest being hybrids.
The campaign for the adoption of green energy and electric vehicles received a boost on Tuesday when Volvo, a Swedish carmaker, announced that it will focus on electric vehicles from 2030. Hakan
Samuelsson, the company’s chief executive officer, said the company is seeking to invest in the future and quit the “shrinking business” of combustion car engines.
According to Samuelsson, all models with an internal combustion engine, including hybrids, would be phased out.
“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. We are fully focused on becoming a leader in the fast-growing premium electric segment,” he said.
Henrik Green, Volvo’s chief technology officer, explained that the 2030 target is driven by “strong demand for its electrified cars in recent years and a firm conviction that the market for combustion engine cars is a shrinking one”.
“There is no long-term future for cars with an internal combustion engine,” Green said.
“We are firmly committed to becoming an electric-only car maker and the transition should happen by 2030. It will allow us to meet the expectations of our customers and be a part of the solution when it comes to fighting climate change.”
The Nigerian economy, which relies heavily on the revenue generated from crude oil exports, might be affected by this development as European countries are the largest importers of Nigeria’s crude oil.
In January 2021, Volvo sold 59,588 cars, recording a 30.2 per cent increase from January 2020 when it sold 45,752 vehicles. Volvo had previously announced plans to make 50 per cent of its vehicles electric by 2025 while the remaining half relies on hybrids. The company said the new strategy aligns with the United Kingdom’s 2030 ban on internal combustion engine sales.
In November, UK Prime Minister Boris Johnson said new cars and vans powered by petrol and diesel will not be sold in the UK from 2030. Johnson said it is part of “a green industrial revolution” to tackle climate change and to create jobs. In 2020, Volvo launched the XC40 Recharge, its first fully electric car.
