Published on March 3rd, 2021 | by Joshua Chin0
Volvo Announces Plans To Go Fully Electric By 2030
The future lineup of all electric Volvo models will also be exclusively sold online.
Volvo has recently announced that it will be transitioning towards an all-electric model lineup by 2030. Furthermore, the Scandinavian automaker has also announced that the sale of all of its fully electric models will only be available online.
Starting first with its major announcement of Volvo transitioning to becoming a fully electric automaker, this shouldn’t come as a surprise seeing that nearly every other automaker has recently too been announcing its own plans to fully electrify its lineup in the near future. Moreover, the Swedish automaker has already been leading the way towards total electrification. Not only with its efforts made towards the hybridisation of its range well before any other premium automaker, but also with the recent launch of its popular XC40 Recharge, the current sole fully-electric model in the range.
Nevertheless, what is new here about this announcement is that Volvo has actually accelerated its plans to electrify its lineup. Bringing its electrification ambitions forward by some 10 years after its initial announcement in 2019 that the automaker only plans to transition into becoming a fully electric car company by 2040.
Then again though, Volvo still retains its prior aim for half its global sales to consist of fully electric cars by 2025. The other half meanwhile will be accounted for by plug-in hybrid electric vehicles (PHEV).
Going by a graphic (shown above) that accompanied the Swedish automaker’s announcement, it would appear that Volvo is targeting to have 7 electric models within its lineup by 2025. The first two of which is the aforementioned XC40 Recharge, and the newly launched C40 Recharge.
Now moving onto the second major announcement of Volvo moving the sale of its fully electric cars to being online only. As part of this online sales shift, the automaker has plans to ‘invest heavily in its online sales channels, radically reduce complexity in its product offer, and with transparent and set pricing models’.
To add to that, all future models sold will also feature the Care By Volvo customer care package. Previously termed for its subscription service, the Swedish automaker has since expanded its role to become a comprehensive after-sales package that will include the service, warranty, roadside assistance and, in certain markets, insurance and home charging of all Volvos to leave the dealership in the future.
Having said that, Volvo has reaffirmed that physical dealerships will still play a big role in its future. That is because they will still be responsible for ‘a variety of important services such as selling, preparing, delivering and servicing cars’.
“The future of Volvo Cars is defined by three pillars: electric, online and growth,” says Lex Kerssemakers, head of global commercial operations. “We want to offer our customers peace of mind and a care-free way of having a Volvo, by taking away complexity while getting and driving the car. Simplification and convenience are key to everything we do.”
PRESS RELEASE: Volvo Cars is committed to becoming a leader in the fast-growing premium electric car market and plans to become a fully electric car company by 2030.
By then, the company intends to only sell fully electric cars and phase out any car in its global portfolio with an internal combustion engine, including hybrids.
The company’s transition towards becoming a fully electric car maker is part of its ambitious climate plan, which seeks to consistently reduce the life cycle carbon footprint per car through concrete action.
Its decision also builds on the expectation that legislation as well as a rapid expansion of accessible high quality charging infrastructure will accelerate consumer acceptance of fully electric cars.
Volvo Cars’ move towards full electrification comes together with an increased focus on online sales and a more complete, attractive and transparent consumer offer under the name Care by Volvo. All fully electric models will be available online only.
The 2030 ambition represents an acceleration of Volvo Cars’ electrification strategy, 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.
“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 Håkan Samuelsson, chief executive. “We are fully focused on becoming a leader in the fast-growing premium electric segment.”
Volvo Cars launched its first fully electric car, the XC40 Recharge, in markets around the globe last year. Later today the company will reveal its second fully electric car, a new model in the 40 Series.
In coming years Volvo Cars will roll out several additional electric models, with more to follow. Already by 2025, it aims for 50 per cent of its global sales to consist of fully electric cars, with the rest hybrids. By 2030, every car it sells should be fully electric.
“There is no long-term future for cars with an internal combustion engine,” said Henrik Green, chief technology officer. “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.”