Swedish carmaker, Volvo, on Tuesday declared that it will focus on electric vehicles from 2030.
The announcement comes amid pressure from governments around the world for the adoption of green energy and electric vehicles.
It is believed that Volvo is also trying to capitalise on the growing demand for electric cars, including in China, which is already one of its biggest markets.
The company’s Chief Executive Officer, Hakan Samuelsson said the company is seeking to invest in the future and quit the “shrinking business” of combustion car engines.
Samuelsson noted that all models with an internal combustion engine, including hybrids, would be phased out.
“To remain successful, we need profitable growth. So instead of investing in a shrinking business, we choose to invest in the future – electric and online. We are fully focused on becoming a leader in the fast-growing premium electric segment,” he said.
Volvo’s Chief Technology Officer, Henrik Green, acknowledged that the 2030 target is driven by “strong demand for its electrified cars in recent years and a firm conviction that the market for combustion engine cars is a shrinking one”.
“There is no long-term future for cars with an internal combustion engine,” Green said.
“We are firmly committed to becoming an electric-only car maker and the transition should happen by 2030. It will allow us to meet the expectations of our customers and be a part of the solution when it comes to fighting climate change.”