Volvo is to become a fully electric car company by 2030 and shift all sales online as it looks to future-proof its business.

By 2030, Volvo will phase out any car in its global portfolio with an internal combustion engine – including hybrids. And all sales will shift online

By this date, the carmaker has said it will phase out any car in its global portfolio with an internal combustion engine – including hybrids.

The announcement comes ahead of the reveal later today of Volvo’s second fully electric car, which will join the existing XC40 Recharge launched globally last year and will sit in the 40 series, with more electric models to follow. Volvo said it will only focus on developing electric cars going forward.

The 2030 ambition ramps up its previous plan, announced in April 2018, for fully electric cars to make up 50% of its sales by 2025 and the other 50% to be made up of hybrids.

It follows the recent announcements by Ford and Jaguar Land Rover on their electrification plans. Ford has said its passenger vehicle range will go all-electric in Europe by 2030, supported by “expressive new vehicles and a world-class connected customer experience”. Jaguar is to become an all-electric luxury brand globally from 2025 while the first all-electric Land Rover model is due in 2024; the plan is for Land Rover to go all-electric by 2036.

Volvo said its decision builds on the expectation that legislation – such as the UK’s 2030 diesel/sales ban – as well as a rapid expansion of accessible high-quality charging infrastructure will accelerate consumer acceptance of fully electric cars. It said it’s seen strong demand for its electrified cars in recent years and has “a firm conviction that the market for combustion-engined cars is a shrinking one”.

“There is no long-term future for cars with an internal combustion engine,” said Henrik Green, chief technology officer at Volvo Cars. “We are firmly committed to becoming an electric-only car maker and the transition should happen by 2030. It will allow us to meet the expectations of our customers and be a part of the solution when it comes to fighting climate change.”

Alongside the switch to online sales channels, Volvo said it will “radically reduce complexity in its product offer, and provide transparent and set pricing models”.

The aim is to provide a “complete convenient customer offering”, all under the Care by Volvo name – previously used for its subscription service but now being expanded into a broader customer offer.

“The future of Volvo Cars is defined by three pillars: electric, online and growth,” said Lex Kerssemakers, head of global commercial operations at Volvo Cars. “We want to offer our customers peace of mind and a care-free way of having a Volvo, by taking away complexity while getting and driving the car. Simplification and convenience are key to everything we do.”

All online car sales will come with a package including items such as servicing, warranty, roadside assistance, as well as insurance where available and home charging options.

However, Volvo added that its dealerships remain a crucial part of the customer experience and will continue to be responsible for a variety of important services such as preparing, delivering and servicing cars.

“Online and off-line need to be fully and seamlessly integrated,” added Lex Kerssemakers. “Wherever the customer is in their journey – online, in a showroom, in a Volvo Studio, or driving the car – the customer experience needs to be top-notch.”