Will Volvo reconsider 2026 Australian EV commitment?

Volvo Australia has given the first public hint it might review its industry-leading commitment to an all-EV line-up by 2026.

Local boss Stephen Connor made the dramatic commitment in October 2022 to drop internal combustion engines from the brand’s showroom line-up by the end of 2026, following on from Volvo’s global commitment to go all-EV by 2030.

But Volvo HQ scrapped that target earlier this month, confirming it would still have plug-in hybrids and mild hybrids in its range after 2030.

Slower-than-expected EV sales have prompted the brand to pause its global transition, a move already made by other brands, including Ford, Mercedes-Benz, Porsche and Volkswagen.

In Australia, EV sales are up just 1.4 per cent year-on-year, while hybrids are up 96 per cent and plug-in hybrids 127.4 per cent (albeit off a low base).

As recently as the May launch of the electric Volvo EX30 in May, Connor told media Volvo Australia remained committed to the 2026 goal.

“The EX30 will further drive our accelerated Australian strategy of being an all-electric car company by 2026,” he said.

But Aussie auto industry sources have indicated to carsales Volvo Australia’s bold commitment has caused angst amongst its dealer network, and even suggested an internal rethink could be on the cards.

Asked to clarify the local operation’s position on the 2026 transition, company spokesperson Greg Bosnich said: “Our (Australian 2026) all-electric ambition is still very much a focus.

“Since the global transition to electrification will not be linear, as customers and markets move at different speeds of adoption (product and consumer lead), we (Volvo Cars) need to be pragmatic and flexible, while retaining our industry-leading position on electrification and sustainability.”

While cautiously worded, this statement is not a full-throated endorsement of the 2026 plan.

Volvo Australia currently sells a combination of mild and plug-in hybrids as well as battery-electric vehicles.

It will soon add the EX90 electric large SUV and ES90 full-sized saloon to its local ranks, not to mention the comprehensively updated XC90.

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