Volvo Australia plans to go all-electric by 2026: All the details

Volvo wants to sell its last petrol car in Australia in 2025, as part of an ambitious plan to make it one of Australia’s biggest luxury brands.

The China-based, Sweden-based brand has committed to selling only electric cars by 2030 worldwide, but Volvo Car Australia chief executive Stephen Connor last week told the newspaper. He even thinks that local buyers of the brand will be ready by then.

“We are not going to wait until 2030, we are not going to wait for the global strategy to be in place. I proposed to Gothenburg the other day, and we will be completely electric by 2026 in Australia,” said Mr Connor.

Although upstarts like Tesla, BYD and its sister companies at Polestar have all gone electric, Volvo plans to be the first brand to transition completely to electric power in Australia. previously offered petrol, diesel and plug-in hybrid options locally.

“If our product were available today, I would probably give up. We can do it today. I think consumers are ready for it, I really do,” Mr. Connor said.

Here are all the details on Volvo’s plans, what its operating range will look like in 2026 and why it thinks the time to move is now.

What cars will Volvo sell?

The current Volvo line-up has two electric vehicles: the XC40 Recharge Pure Electric and the C40 Recharge Pure Electric. Both are small SUVs based on internal combustion platforms.

In addition to those models, it offers petrol and plug-in hybrid versions of:

“There won’t be any gaps in the model range when the EV-only switch is lightly clicked,” Connor confirmed.

“We will remain focused on the core models that have made us famous, but you will see new models emerge. [alongside the core models] – but they will be completely electric.”

We already knew the XC90 would be replaced by EX90 SUV will be revealed on November 9th.

We also know that the current petrol and hybrid XC90 update will arrive alongside the electric version globally, but it’s not guaranteed to arrive.

The XC40 is already available with electric power, which means the XC60, S60 and V60 Cross Country are the three cars that currently have no confirmed replacements. Of that trio, the XC60 is the most important for Volvo.

It is the second best-selling model in the range after the XC40 and goes head-to-head with the BMW X3 and Mercedes-Benz GLC in one of the most competitive segments of the luxury market.

Mr. Connor confirmed it will be replaced with an electrical equivalent, but that it will be close to the cut-off time in 2026. By that time, the current petrol model – can be updated between now and then. that – will be almost a decade.

As for the S60 and V60? We don’t know what the future holds for them, as sedans and wagons are catching on in most markets.

Volvo is planning to launch a new electric-only model every year for the next five years (including 2022). The EX90 is for 2022 and we know the XC60 replacement will be another one, but that leaves space for three other new car.

The form they will take remains unclear.

How does Volvo plan to supply enough cars?

Compared to its rivals, Volvo is forecasting to offer more electric vehicles by 2023.

It is expected to have 1550 examples of the C40 Recharge Pure Electric and 3450 examples of the XC40 Recharge Pure Land in Australia in 2023; enough that about 50% of all XC40 sales will be electric.

Moving forward, however, 5000 electric cars won’t cut it. Currently, recharge cars make up 30% of Volvo’s sales in Australia. By 2025, it is expected to reach 80%, with the final 20% to pass in 2026.

Volvo expects to sell about 12,500 vehicles by 2022 and wants to deliver 20,000 vehicles a year by 2026.

Mr Connor said Australia’s recent growth, combined with the benefits associated with sourcing cars from China, were both key factors in the EV-only plan.

The range sold in Australia is made at a factory in China, rather than in Sweden or Belgium as is the case with Volvos sold elsewhere in the world.

“If you get a car from Europe, it’s going to have to be on a boat for six weeks,” Mr Connor said.

“We also pay tax on cars coming from Europe, so there is that problem. Unfortunately, whenever you pay an obligation, someone has to pay for it somewhere, so the price of the car usually goes up because of the obligation,” he said.

“The other problem is that we have brand new factories that can make better cars and more cars from China.

“They are brand new, only three years old. Don’t get me wrong, Gothenburg is beautiful but it’s an old factory. Therefore, China’s capacity is much larger than somewhere like Gothenburg,” he explained.

“Then you add, China generally you can get the cars two, two and a half weeks after production,” he said.

Australia’s recent sales growth has also played a role in helping Volvo secure more vehicles for our market. With a strong bank of orders, strong sales and a confident plan for the future, the brand is expected to continue to be cared for by the factory and headquarters in the future.

What will change at Volvo dealers?

Volvo today told its dealers about its 2026 plans.

Mr Connor admits there will be anxiety from some about the transition.

“Change is facing the best of times, no matter who you are or where you come from,” he said.

“They will feel uncomfortable because there is a change. One day, they sold the ICE very well; diesel cars and everything else, now suddenly we’re all electric.

“But we only brought it forward after four years, so they already knew the day had finally come. Again, this rate of change is unbelievable, isn’t it? This rate of change is absolutely unbelievable.

“We don’t tell them ‘this inhibits your business model’. We don’t tell them ‘you have to close the door’. What we’re saying is ‘it’s a new world of work, be bold,’ he said.

There will be changes to the brand’s physical dealer locations. Each will be capable of fast charging by 2026, with plans to ensure they also have amenities like bathrooms, coffee makers and warm places to wait for your car to refill.

The chargers will be free to use for Volvo owners, according to the plan Mr. Connor laid out.

Mr Connor also suggested the ongoing maintenance of internal combustion vehicles, the potential for entry into subscription-based or car-sharing services, and the benefits of doubling sales, are the carrots. for the dealer network to embrace change.

Is there a risk of losing customers?

The short answer is yes.

“Certainly when you come up with a strategy like this, you lose customers,” Mr. Connor said.

“That’s okay, because maybe Volvo isn’t right for them either. Maybe their time in life, stage, family, whatever may not be right for them. I don’t want to prove to everyone that Volvo is the right thing to do for everyone. “

Still, for any customers Volvo loses, the brand is expected to reap more profits with its plans to switch to all-electric production – driven in part by the youngest members of most of the industry. all control households.

“The decision-making factors in the family aren’t mom and dad anymore, they’re really the kids going ‘you know, dad, I don’t want you to buy that car – I want you to buy that car. this car, because they’re an authentic brand, and they live and breathe what they say they’re going to do,’ Mr. Connor said.

How much will the new electric cars cost?

Mr. Connor made no secret of the fact that the switch to electric power would increase the input price of the Volvo brand.

Currently, the cheapest car in the range is the XC40 Plus B4 for $52,990 before on-road costs, while the top-of-the-range XC40 in the range is the Ultimate B5 Dark at $63,990 before on-road.

The cheapest EV in the range is the XC40 Recharge Pure Electric (single engine) priced at $72,990 before hitting the road.

According to its boss, Volvo sells more premium, higher-spec versions than the base model strippers. That means the price gap for the average customer can be negligible.

As for the promise of parity prices? Mr. Connor said we may not get there anytime soon.

“What is happening is; Battery prices are falling but our logistics costs are going up,” he said.

“Our supply of components and other parts is growing. So what’s really happening in this race is that technology, because we’re gaining volume, is going down – but we’re paying more for freight, we’re paying more for freight. more money for parts.

“So I don’t see a sudden drop in prices. I think if anything I see them they’re pretty stable, and if anything they’ll just keep growing. ”

Why bother switching in 2026, when Volvo will only use electric vehicles worldwide by 2030?

“I really think Australian consumers are ready for that, I think they are ready for change,” Mr. Connor said.

“If you look at the facts, Tesla will sell more than 20,000 vehicles this year. That fact itself is telling you that people are not waiting for the government to provide subsidies,” he said.

“I think people want to see the revolution,” he said.