Volvo will halt diesel car production at the start of 2024, according to the Swedish automaker’s press service.
Volvo pointed to a strategic move last year, noting that in November 2022 it sold its stake in the Geely joint venture Aurobay, which covers the company’s internal combustion engine assets. The company has stopped investing in new ICE research and development. The plan is to offer only electric vehicles by 2030 and to operate as a climate-neutral company by 2040.
“Electric powertrains are the future,” said Volvo Cars CEO Jim Rowan. He highlighted that electric systems outperform traditional engines in several ways, including lower noise and vibration, reduced maintenance costs, and zero emissions.
In Europe, diesel engines powered a large share of Volvo’s sales in 2019. Today, the company emphasizes that a growing portion of its sales comes from electric and hybrid models.
Geely’s earlier collaboration also included a push to launch a new electric car with the Chinese tech giant Baidu.
Industry observers note Volvo’s shift aligns with a broader industry move toward electrification, accelerated by policy support, consumer demand for lower running costs, and stronger investments in EV platforms and charging infrastructure. The company aims to expand its electric lineup while leveraging shared platforms and partnerships to accelerate development and scale. Market analysts will watch how Volvo balances supply, battery technology, and regional incentives as it moves toward higher EV penetration across North America and Europe. Attribution to Volvo press materials and company announcements.