Volvo vehicles to be fully electrical by 2030

All Volvo automobiles will be fully electrical by 2030, the Swedish car maker said on Tuesday as it rolled away its second electrical vehicle, the C40 Recharge.

The Gothenburg-based car maker, which is owned by China's Zhejiang Geely Positioning Group, aims to phase out models in its global portfolio with an interior combustion engine, including hybrids, within the next 10 years.

By 2025, EVs will constitute 50 % of global product sales as the business aims to lessen its carbon footprint per car by 40 per cent by the same calendar year, Volvo said.

Restrictive emissions and fuel-efficiency regulations have forced car companies to give attention to vehicles that are more green. Last month, Jaguar Property Rover said its luxury company Jaguar will get all-electric by 2025 since it aims to become net-zero carbon organization by 2039.

In January, Basic Motors, the largest US car maker, said it plans to eradicate petrol and diesel light-duty cars, including SUVs, by 2035. South Korean car maker Kia is normally planning to launch its first EV in the primary quarter of this yr, while Germany’s Volkswagen, the second-largest car maker by sales this past year, plans to unveil about 70 new electric models by 2028.

Volvo's EV ambitions build on the expectation that legislation in addition to a rapid growth of accessible high-quality charging infrastructure will accelerate buyer acceptance of EVs, it added.

“To remain successful, we are looking for rewarding growth … so rather than purchasing a shrinking business, we choose to spend money on the future - electric and online,” said Hakan Samuelsson, the company’s leader.

“We are fully focused on becoming a innovator in the fast-growing top quality electric segment.”

Volvo started development of its initial fully electric power car, the XC40 Recharge, in October last year.

The company said it will roll out “several additional” electric models in the coming years but didn't specify the actual number.

“The C40 Recharge represents the future of Volvo and shows where we are going … there is absolutely no long-term future for cars with an interior combustion engine,” Henrik Green, chief technology officer at Volvo, said.

The transition can help the company to meet customers’ expectations and “become a part of the solution in terms of fighting climate change”, he added.

Volvo's announcement follows strong revenue in the next half of this past year. It reported its best-ever second-half income and sales volumes.

Through the six-month period, earnings increased 4.9 % annually to SEK151 billion ($18.2bn). Its operating profit rose 8.2 % to SEK9.5bn.

The business also reported its best ever January, after sales rose 30.2 % to 59,588 cars.