According to a Reuters report on September 19th, Volvo Cars announced that it would stop producing all diesel models by the beginning of 2024 as part of its transition to becoming an all-electric vehicle manufacturer.
As per Volvo Cars' plan, by 2030, it will only sell all-electric vehicles, aiming to be a climate-neutral company by 2040. To achieve these goals, the company intends to halt the production of all diesel-powered models at the start of 2024.
In a statement, Volvo Cars stated, "In a few months, Volvo Cars will conclude the production of diesel-powered vehicles, becoming one of the first traditional car manufacturers to take this step."
Last year, in its bid to become an all-electric brand by 2030, Volvo Cars announced the divestment of its 33% stake in Aurobay to Geely Holding, making it the first traditional carmaker to fully exit internal combustion engine R&D and manufacturing. To realize its ambitious electrification goals, Volvo Cars has shifted its investment and capital allocation focus towards developing high-performance all-electric powertrains.
In 2019, the majority of Volvo Cars sold in Europe were diesel, but by 2022, diesel vehicles accounted for just 8.9% of Volvo Cars' European sales. As of August this year, 33% of Volvo Cars' sales came from all-electric and hybrid models. However, the company did not specify the proportion of diesel to gasoline models within the remaining 67% of internal combustion engine vehicles.
