Volvo has outlined its plans to become a fully electric car company by 2030 and will launch a new family of electric cars in the coming years.
It intends to sell only fully electric cars and phase out any car in its global portfolio with an internal combustion engine (ICE), including hybrids, within nine years.
Volvo said it aims for 50% of its global sales to consist of fully electric cars, with the rest hybrids, by 2025.
In 2020, Volvo led significant reductions in average CO2 emissions, according to Jato Dynamics' data.
The Swedish car maker expects that legislation as well as a rapid expansion of accessible high-quality charging infrastructure will accelerate consumer acceptance of fully electric cars.
Håkan Samuelsson, chief executive of Volvo Cars, said: “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.”
Last month, Volvo Cars and Geely Auto scrapped merger plans, but confirmed plans to deepen their existing collaboration – seeing the two companies work together on the development on new electric vehicle (EV) architecture, powertrains and autonomous drive technologies.
Volvo will also support the global expansion of Lynk & Co - a new plug-in car brand - using its existing distribution and service network.
The announcement by Volvo follows the commitment made by Ford, to sell only electric cars in Europe by 2030 – with all Ford cars sold in the continent by 2026 expected to be zero-emissions capable.
Henrik Green, chief technology officer at Volvo Cars, said: “There is no long-term future for cars with an internal combustion engine.
“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.”