Volvo Jumps on the Electric Bandwagon; Phasing Out Fossil-Fueled Models by 2030
Volvo, previously declared that electric vehicles would make up half their sales by 2025, and they have now announced the next goalpost that comes just five years after – to go fully electric by 2030. And that means phasing out all their models with internal combustion engines and hybrid powertrains.
The move is to capitalise on the growing interest in electric vehicles and to accede to governmental push in major car markets to go electric and implement narrower emission standards. The UK plans to ban fossil-fueled vehicles on their roads by 2030; the EU targets 30 million cars on their roads by the same deadline.
In one of the world’s biggest car markets and also one of Volvo’s key markets, China, many big cities have started limiting the number of new car plates issued each year, and a significant proportion is usually allocated for “new energy vehicles”.
Now, despite best efforts, electric vehicles only contributed 2.6% to global car sales and about 1% to global car stock in 2019. Present adoption rates would be too slow to achieve the lofty electric dreams that governments and major carmakers are harbouring. High cost of ownership, range anxiety, lack of charging facility, the use of rare materials to make the batteries and insufficient battery technology are some of the reasons that they would find the path to their electric dreams to be more than a little bit challenging.
But according to Volvo’s CTO, Henrik Green: “There is no long-term future for cars with an internal combustion engine.” It is evident that the Swedish carmaker is betting their bottom dollar on the electric premium segment, so good luck to them.
They will not be going about it alone, though, for they announced last month that they will be collaborating with sister company Geely Auto (both are under Zhejiang Geely Holding) to develop shared EV modular architectures that can be used by both marques.