Volvo’s chief commercial officer, Björn Annwall, has announced that the automaker will only sell fully electric cars from 2030, regardless of the market. This all-in strategy could cost Volvo sales in markets such as the US, where battery-powered vehicles remain unpopular due to range anxiety and inadequate charging infrastructure. However, Annwall believes that focusing on a single powertrain technology gives Volvo the best chance of producing the most compelling EV products. Last year, EVs accounted for just 5.8% of new-car sales in the US, but consulting firm Guidehouse Insights expects that share to grow to at least 27% by 2030.
According to Auto News, Volvo has made a bold commitment to electric vehicles (EVs). The Swedish automaker has announced that it will not sell any cars that are not full-electric after 2030, regardless of the market. This means that Volvo is going all-in on EVs, even though this strategy could cost them sales in markets such as the United States.
Björn Annwall, Volvo’s chief commercial officer, made this announcement on the sidelines of a launch event for the company’s newest EV. He emphasized that there are no ifs, no buts about this decision. Volvo is fully committed to producing only EVs by 2030.
However, this all-in strategy could be a risky move for Volvo, especially in markets like the United States. The US remains skeptical of battery-powered vehicles due to range anxiety and inadequate charging infrastructure. Last year, EVs accounted for just 5.8% of new-car sales in the US, according to Guidehouse Insights. The consulting firm expects that share to grow to at least 27% by 2030.
Annwall conceded that there might be a few markets where Volvo could lose some sales due to this strategy. But he believes that focusing on a single powertrain technology gives Volvo the best shot at producing the most compelling EV products. He added that giving up growth in the battery vehicle market is not an option, as ICE (internal combustion engine) is a shrinking market.
“To be successful, you should focus on the growing part of the market,” Annwall said. “We would give up a lot of growth if we didn’t focus on battery vehicles. Last time I looked, that’s a very strong growing market.”
Volvo’s commitment to EVs is part of its broader sustainability plan. The company aims to become carbon-neutral by 2040, and it plans to achieve this goal by reducing its carbon footprint, improving its energy efficiency, and increasing the use of renewable energy. Volvo also plans to launch a range of electric and hybrid vehicles in the coming years, including the XC40 Recharge, the company’s first fully electric SUV.
In conclusion, Volvo’s decision to go all-in on EVs by 2030 is a bold move that could pay off in the long run. While it may cost them sales in some markets, the company believes that focusing on battery-powered vehicles is the key to success in a rapidly growing market. By committing to sustainability and reducing its carbon footprint, Volvo is positioning itself as a leader in the transition to clean energy.