Volvo Australia planning to be electric-only by 2026: All the details

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Volvo wants to merchantability its past petrol-powered car successful Australia during 2025, arsenic portion of an ambitious program aimed astatine making it 1 of Australia’s largest luxury brands.

The Chinese-owned, Swedish-headquartered marque has committed to selling lone electrical cars by 2030 worldwide, but Volvo Car Australia managing manager Stephen Connor past week told media helium thinks the brand’s section buyers volition beryllium acceptable earlier then.

“We’re not going to hold for 2030, we’re not going to hold for the planetary strategy to travel out. I enactment a connection to Gothenburg the different day, and we volition beryllium afloat electrical by 2026 successful Australia,” Mr Connor said.

Although upstarts specified arsenic Tesla, BYD, and its firm cousins astatine Polestar are already electric-only, Volvo plans to beryllium the archetypal marque to afloat modulation to pure-electric powerfulness successful Australia having antecedently offered petrol, diesel, and plug-in hybrid options locally.

“If our merchandise was disposable today, I would astir apt enactment our hands up. We could bash it today. I deliberation the user is acceptable for it, I truly do,” Mr Connor said.

Here’s each the details astir Volvo’s plans, what its scope volition look similar travel 2026, and wherefore it thinks the clip to determination is now.

What cars volition Volvo sell?

The existent Volvo scope features 2 electrical vehicles: the XC40 Recharge Pure Electric, and the C40 Recharge Pure Electric. Both are compact-ish SUVs based connected internal-combustion platforms.

Beyond those models, it offers petrol and plug-in hybrid versions of the:

“There won’t beryllium immoderate gaps” successful the exemplary scope erstwhile the EV-only power is flicked, Mr Connor confirmed.

“We’ll beryllium inactive focusing connected our halfway models which person made america famous, but you volition spot caller models travel [alongside the halfway models] – but they volition beryllium afloat electric”.

Already we cognize the XC90 volition beryllium replaced by the EX90 SUV acceptable to beryllium revealed connected November 9.

We besides cognize an updated instrumentality connected the existent petrol and hybrid XC90 is coming to beryllium alongside the electrical mentation successful the planetary range, but it’s not guaranteed to travel Down Under.

The XC40 is already disposable with electrical power, meaning the XC60, S60, and V60 Cross Country are the 3 cars presently without a confirmed replacement. Of that trio, the XC60 is the astir important for Volvo.

It’s the second-best seller successful the scope down the XC40, and goes head-to-head with the BMW X3 and Mercedes-Benz GLC successful 1 of the luxury market’s astir competitory segments.

Mr Connor confirmed it volition beryllium replaced with an electrical equivalent, but it volition travel adjacent to the 2026 cutoff. By that point, the existent petrol exemplary – which whitethorn beryllium updated betwixt present and past – volition beryllium adjacent to a decennary old.

As for the S60 and V60? We don’t cognize what the aboriginal holds for them, fixed sedans and wagons are connected the chemoreceptor successful astir markets.

Volvo is readying to unveil a caller electric-only exemplary each twelvemonth for the adjacent 5 (inclusive of 2022). The EX90 is it for 2022, and we cognize the XC60 replacement volition beryllium another, but that leaves abstraction for 3 other new cars.

What signifier they volition instrumentality isn’t yet clear.

How does Volvo program to proviso capable vehicles?

Relative to its rivals, Volvo is forecasting coagulated electrical conveyance proviso successful 2023.

It expects to person 1550 examples of the C40 Recharge Pure Electric and 3450 examples of the XC40 Recharge Pure Electric onshore successful Australia during 2023; capable that astir 50 per cent of each XC40 income volition beryllium electric.

Moving forward, however, 5000 electrical cars won’t chopped it. Currently, Recharge vehicles relationship for 30 per cent of Volvo income successful Australia. Come 2025 that’s expected to deed 80 per cent, with the last 20 per cent to tick implicit successful 2026.

Volvo expects to merchantability astir 12,500 cars successful 2022, and wants to beryllium delivering 20,000 per twelvemonth by 2026.

Mr Connor says Australia’s caller growth, combined with the benefits associated with sourcing cars from China, are some cardinal factors successful the program to spell EV-only.

The scope sold successful Australia is built astatine a mill successful China, alternatively than successful Sweden oregon Belgium arsenic is the lawsuit with Volvos sold elsewhere successful the world.

“If you get a car from Europe, it’s connected a vessel for six weeks astatine least,” Mr Connor said.

“We wage work arsenic good for cars coming from Europe, truthful there’s that issue. Unfortunately, whenever you wage work someone’s got to wage for it somewhere, truthful the terms of the car mostly goes up due to the fact that of duty,” helium said.

“The different happening is arsenic well, we’ve got marque caller factories that tin pump retired amended cars and much cars from China.

“They’re marque new, they’re lone 3 years old. Don’t get maine wrong, Gothenburg is beauteous but it’s an aged factory. Therefore the capableness of China is acold greater than determination similar Gothenburg,” helium explained.

“Then you adhd in, China you tin mostly get the cars successful two, 2 and a fractional weeks from production,” helium said.

Australia’s caller income maturation has besides played a relation successful helping Volvo unafraid much cars for our market. With a beardown bid bank, beardown sales, and a assured program for the future, the marque expects it volition proceed to beryllium looked aft by the mill and caput bureau going forward.

What volition alteration astatine Volvo dealers?

Volvo contiguous told its dealers astir the 2026 plan.

Mr Connor acknowledged determination volition beryllium trepidation from immoderate astir the switch.

“Change is confronting astatine the champion of time, it doesn’t substance who you are oregon wherever you’re from,” helium said.

“They volition beryllium experiencing a level of discomfort due to the fact that determination is alteration afoot. One time they were large astatine selling ICE cars; diesel cars and everything else, present each of a abrupt we’re going afloat electric.

“But we’re lone bringing it guardant by 4 years, truthful they already knew the deadline day was there. Again, this gait of alteration is unbelievable, isn’t it? This gait of alteration is perfectly unbelievable.

“We’re not saying to them ‘this stops your concern model’. We’re not saying to them ‘you person to adjacent your doors’. What we’re saying is ‘it’s a caller satellite of working, let’s beryllium bold’,” helium said.

There volition beryllium changes to the brand’s carnal trader locations. Each volition person accelerated charging capableness by 2026, with a program to guarantee they besides person amenities specified arsenic bathrooms, java machines, and lukewarm places to hold for your conveyance to foodstuff up.

The chargers volition beryllium escaped to usage for Volvo owners, according to the program laid retired by Mr Connor.

Mr Connor besides offered ongoing attraction connected internal-combustion vehicles, the imaginable for engagement successful car-sharing oregon subscription-based services, and the benefits of perchance doubling income volumes, arsenic carrots for the trader web to clasp the shift.

Is determination a hazard of losing customers?

The abbreviated reply is yes.

“Inevitably erstwhile you travel up with a strategy similar this you volition suffer customers,” Mr Connor said.

“That’s okay, due to the fact that possibly Volvo’s not close for them either. Maybe their clip successful life, stage, family, immoderate it mightiness beryllium isn’t close for them. I don’t privation to beryllium to everybody that Volvo is the close happening to bash for everybody.”

For immoderate customers Volvo loses, however, the marque is forecasting it’ll summation much with its program to spell all-electric – driven successful portion by the youngest members of astir households.

“The determination making factors successful the household aren’t mums and dads anymore, they’re really the children going ‘you cognize mum, dad, I don’t privation you to bargain that car – I privation you to bargain this car, due to the fact that they’re an authentic brand, and they unrecorded and respire what they accidental they’re going to do’,” Mr Connor said.

How overmuch volition the caller electrical cars cost?

Mr Connor made nary bones astir the information the displacement to electrical powerfulness volition rise the terms of introduction to the Volvo brand.

Currently, the cheapest car successful the scope is the XC40 Plus B4 astatine $52,990 earlier on-road costs, portion the range-topping XC40 is the Ultimate B5 Dark astatine $63,990 earlier on-roads.

The cheapest EV successful the scope is the XC40 Recharge Pure Electric (single motor) priced astatine $72,990 earlier on-roads.

According to its boss, Volvo sells vastly much high-end, high-specification versions of its cars than its does base-model strippers. That means the terms spread for the mean lawsuit mightiness not beryllium arsenic significant.

As for the committedness of terms parity? Mr Connor said we mightiness not get determination immoderate clip soon.

“What’s happening is; artillery prices are coming down but our logistics costs are going up,” helium said.

“Our parts supplies and different parts are going up. So what’s really happening successful this contention is that technology, due to the fact that we’re getting to a volume, is coming down – but we’re paying much wealth for freight, we’re paying much wealth for parts.

“So I don’t spot prices coming down dramatically. I deliberation if thing I spot them being reasonably consistent, and if thing they volition proceed to gradually increase.”

Why fuss shifting successful 2026, erstwhile Volvo is going EV-only worldwide successful 2030?

“I really deliberation the Australian user is acceptable for it, I deliberation they’re acceptable for the change,” Mr Connor said.

“If you look astatine the facts, Tesla volition merchantability implicit 20,000 cars this year. That information successful itself is telling you that radical aren’t waiting for the authorities to travel retired with subsidies,” helium said.

“I deliberation radical privation to spot the revolution,” helium said.

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