KUALA LUMPUR: Volvo Cars is committed to becoming a leader in the premium electric car market with plans to become a fully electric car company by 2030.
The automaker intends to only sell fully electric cars and phase out any car in its global portfolio with an internal combustion engine, including hybrids.
Its move towards full electrification comes together with an increased focus on online sales and Volvo's more comprehensive and transparent consumer experience under the name Care. All fully electric models will be available online only.
Volvo's electrification strategy is driven by strong demand for the company's electrified cars in recent years and a believe that the market for combustion engine cars is a shrinking one.
"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," said Volvo chief executive officer Håkan Samuelsson. "We are fully focused on becoming a leader in the fast-growing premium electric segment."
"There is no long-term future for cars with an internal combustion engine," adds chief technology officer Henrik Green.
"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."
In late Feb, Volvo Cars Malaysia Sdn Bhd (VCM) says that the brand is unaffected by Volvo Cars and China's Geely Auto's announcement to abandon their merger, as the Scandinavian automaker will still retain its distinct image and plans.
VCM managing director Nalin Jain said the automaker's plan for plug-in hybrid electric vehicles (PHEV) models remain on track as highlighted in reports, and will continue to be the Swedish automaker's focus in coming years.
Reports mentioned that Volvo and Geely will still continue to collaborate and will now focus, among other things, on the sharing of electric vehicle architecture and autonomous drive technologies.
The two will also combine their existing powertrain operations into a new standalone company that provides internal combustion engines, transmissions, and next-generation dual-motor hybrid systems to be used by both companies and other automobile manufacturers.
"As Volvo and Geely are still collaborating despite abandoning its merger, we see this as a synergy of ideas and technology. Thus, this in no way affects our plans going forward and instead we can look towards better, more exciting things to come," said Nalin during the local digital launch of the XC40 Recharge T5.
The SUV's launch places Volvo as the first and only automotive brand in Malaysia to offer a full range of completely knocked-down (CKD) PHEV.
The launch also signal's the brand use of the Recharge name for all its new, upcoming PHEV range of vehicles. The new Recharge variant does not replace the presently available XC40 petrol model but the two will instead be sold alongside one another.
Nalin is optimistic the launch of the XC40 Recharge T5 will do well locally, given the popularity of the base XC40 model, and hopes it gives Malaysians an added option for those who are concerned with sustainability and green energy.
He is however unsure how much the present sales tax exemption will help with sales seeing as the model doesn't fall under the affordable range of vehicles.
"Its hard to say because we have to bear in mind the SUV isn't of the affordable range at RM200,000. We are however optimistic as more people look towards personal mobility given the Covid-19 pandemic situation and looking for greener and more sustainable alternatives."
The XC40 Recharge T5 is priced at RM241,997.04 (on-the-road, without insurance, with sales tax exemption until June 30, when its price will then revert to RM255,888) and is of now available at Volvo dealers nationwide as well as online booking through Volvo Car Malaysia's website.
Nalin says that Malaysians can expect more PHEVs to make their local debut in coming times but have not disclosed which models will be appearing next.
Volvo already has aims for 50 per cent of its global sales to consist of fully electric cars, with the rest hybrids by 2025.