Volvo Australia to go all electric


Volvo Australia will pull the plug on selling internal combustion powered models here by 2026. 

Volvo EV.

Australia is often portrayed as being a laggard in the take-up of electric vehicles, but Volvo Car Australia has burst that myth by announcing it will beat its Swedish parent company to the goal of selling electric-only models by some four years.

The Australian division of the safety-conscious Swedish car maker recently announced it would go fully electric by 2026, four years earlier than the parent company's 2030 global target. 

It’s a bold move, given that Volvo Australia only launched its second dedicated electric model here in late October.

The compact SUV-like Volvo C40 Recharge Pure Electric is priced from $74,990 and joins the brand’s existing XC40 Pure Electric. 

"Volvo Cars has one of the most ambitious climate plans in the car industry which involves consistently reducing the life-cycle carbon footprint per car through concrete action,” Managing Director of Volvo Car Australia Stephen Connor said.

"Australian consumers are early adopters of new technologies and they are embracing fully electric cars in increasing numbers as part of a practical response to combating climate change.

"There is no long-term future for cars with an internal combustion engine. So, instead of investing in a shrinking business, we choose to invest in the future, which is fully electric."

Mr Connor said by 2025 nearly 80% of Volvo's Australian sales would be electric models.

"The decision to sell only electric cars from 2026 makes perfect sense and we believe it will give us a strategic advantage in the Australian market,” he said.

“The final piece of the jigsaw will be converting the last 20% of our customers to a fully electric future from 2026.”

 Volvo’s Australian line-up consists of seven models ranging from the C40 EV to the XC90 SUV, which is available with 2.0-litre turbocharged petrol engines and as a petrol hybrid.

As at the end of October the brand had sold 721 vehicles, with more than half of its sales coming from the XC40 compact SUV, the line-up for which includes two electrics and a hybrid variant.

Volvo Australia’s year-to-date sales are up 11.6% on 2021 and it claims to be the fastest growing brand in the luxury SUV segment.

In related news, the Federal Chamber of Automotive Industries (FCAI) reported this week that total electrified vehicle sales for the month of October were 10.8%, slightly ahead of the 10.6% year-to-date figure.

Overall new vehicle sales so far this year stood at 898,429, of which pure electric vehicles made up 23,869 sales, hybrid electrics 66,175 sales and plug-in hybrid electrics 5,048 sales.

FCAI Chief Executive Tony Weber noted the continuing, strong preference for SUV and light commercial vehicles in Australia.

“Consumer preference for these vehicles needs to be considered when charting any policy designed to increase the uptake of zero-emission vehicles,” Mr Weber said.

“This is particularly critical given the low availability and high price points of zero and low-emission models in these segments.”

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