Volvo Cars to Cease Diesel Production by 2024, Paving the Way for All-Electric Future

By Editor


Volvo Cars has announced its strategic decision to halt the production of any remaining diesel models by early 2024, marking a significant milestone in the company’s journey towards becoming a fully electric automaker. This move positions Volvo as one of the pioneering legacy car manufacturers embracing a future powered solely by electric vehicles.

For 2022, Volvo Car Group recorded an operating profit of SEK 22.3 billion. Revenue in 2022 amounted to SEK 330.1 billion, while global sales reached 615,121 cars.

In Q2 2023, sales of fully electric Volvo car models increased by 178 percent year-on-year during the quarter and accounted for 16 percent of its total share.

Volvo Cars’ production plants are located in Gothenburg, Ghent (Belgium), South Carolina (US), Chengdu, Daqing and Taizhou (China). The company also has R&D and design centres in Gothenburg, Camarillo (US) and Shanghai (China).

As the automotive industry undergoes a transformative shift towards sustainability, Volvo, majority-owned by China’s Geely, has set a bold target to achieve a complete transition to electric vehicles by 2030. A few months from now, the production of the last diesel-powered Volvo car will conclude, illustrating the company’s dedication to reducing its carbon footprint and contributing to a cleaner environment.

In recent years, diesel’s popularity has waned across Europe, notably after the Volkswagen emission-cheating scandal, leading to a rapid decline in diesel vehicle sales. As of 2022, diesel vehicles comprised just 8.9 percent of Volvo’s sales, a stark contrast to their prominence in European car markets in the past.

In August, a notable 33 percent of Volvo’s sales were fully electric or hybrid models, underlining the growing trend towards sustainable and electrified transportation, Reuters news report said.

Europe’s new car market has witnessed a significant transformation in consumer preferences, with diesel vehicles accounting for over 50 percent of sales in 2015, but reducing to slightly over 14 percent by July of this year.

Volvo’s decision to phase out diesel production aligns with the broader industry trend of reducing combustion-engine models and embracing greener alternatives, propelling the automotive sector towards a cleaner and more sustainable future.

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