According to a report by Bloomberg, Volvo Cars set an ambitious goal to only sell battery cars by 2030, accelerating its plans after sales of electric vehicles surged. The Chinese-owned Swedish brand is rolling out a new lineup of electric cars and will unveil its second battery-only model later Tuesday. Going one step further than recent rivals’ decisions on EVs, Volvo’s electric vehicles will be available for sale only online, the company said in a statement.
“We choose to invest in the future — electric and online,” Chief Executive Officer Hakan Samuelsson said. “We are fully focused on becoming a leader in the fast-growing premium electric segment.” Volvo’s move follows rivals including Jaguar Land Rover, General Motors Co. and Volkswagen AG announcing plans to electrify their offerings. In addition to tough emissions regulation, incredible valuations garnered by EV-only newcomers have been a wakeup call to accelerate the pace of change to survive industry upheaval.
The decision also comes days after Volvo and Geely Automobile Holdings Ltd., both owned by parent Zhejiang Geely Holding Co., dropped a plan to merge to instead deepen ties to quicken the pace of development. The pair will share vehicle platforms, software stacks and advanced connectivity, and will hive off their powertrain activities into a separate unit.
By 2025, Volvo expects half of the cars it sells to be fully electric and the other half to be hybrids, including so-called mild hybrids that don’t feature a plug. Volvo has been selling cars online as part of its Care by Volvo subscription offering since 2016.