EV-only plans have changed, says Volvo

VOLVO Car Australia says it will now continue to offer new petrol and hybrid-powered models beyond 2026, revising its earlier all-electric cut-off date.

Speaking with GoAuto at the local launch of the Volvo EX90 in South Australia this week, Volvo Car Australia managing director Stephen Connor said consumer sentiment and demand had forced a change of tack for the Swedish importer, which will now push out its strategy until a later date.

“Our overarching strategy remains. Our ambition is to be electric car company. (But) the path of getting there is being somewhat driven by consumer choice,” he admitted.

“Being a one per cent market player here in Australia we are able to react relatively quickly, and we have done so. An example of that being the imminent introduction of our new XC90 with a refined interior and exterior.

“Initially our production allocation will drive the volume for the EX90. We will increase our production gradually as the sales volumes increase. In the meantime, XC90 will continue to be our main volume driver within the luxury seven seat segment,” he stated.

Noting the rate of change within the industry – and an alteration in planning from head office – Mr Connor said the planned intake of electric vehicles will remain in concert with petrol and hybridised models, and in line with consumer sentiment.

“Our local planning is also centred around global model introductions and to that end we plan to include all-electric models as they enter the product lifecycle,” he added.

As with other brands promising to go all-electric by the end of the decade, on a global basis Volvo Cars has pulled back on its initial plan, now aiming for a 90 per cent electric model mix by 2030.

It will instead focus on a range of hybridised offerings, including plug-in hybrids, as well as continuing to offer petrol power where appropriate.

Locally, electric Volvo Car sales comprised less than half of the total sold Down Under (43.0 per cent) at the end of 2024, the brand’s overall sales down 20.0 per cent from 11,128 units at the end of 2023 to 8898 units.

Visit GoAuto again soon for our Australian launch review of the Volvo EX90.

2024 Volvo model sales (Australia)*:

*Sales data supplied courtesy of the FCAI.