Volvo is to stop production of all diesel-powered models by early 2024, reinforcing its plans to go electric-only by 2030.

Volvo is to stop production of all diesel-powered models by early 2024, reinforcing its plans to go electric-only by 2030.

The announcement was made at Climate Week NYC and aligns with its aim to be climate-neutral by 2040.

The carmaker has already exited the development of new combustion engines. It initially hived off its remaining combustion engine assets into the Aurobay joint venture in 2021 and then sold its stake in the business in November 2022.

“We’re no longer spending a single krona of our R&D budget on developing new internal combustion engines,” said a spokesperson.

Volvo added that the decision to completely phase out diesels by early 2024 illustrates “how rapidly both the car industry and customer demand are changing in the face of the climate crisis”.

Its first fully electric car, the XC40 Recharge, launched just four years ago back in 2019 when, it admits, “the diesel engine was our bread and butter in Europe, as was the case for most other carmakers”.

Since then, fully electric cars and PHEVs have become the mainstay of the Volvo range, driven by changing market demand and tighter emission regulations.

“Electric powertrains are our future, and superior to combustion engines: they generate less noise, less vibration, less servicing costs for our customers and zero tailpipe emissions,” said Jim Rowan, chief executive at Volvo Cars. “We’re fully focused on creating a broad portfolio of premium, fully electric cars that deliver on everything our customers expect from a Volvo – and are a key part of our response to climate change.”

Rowan added that the “all-in” focus on electrification was the right thing to do, as shown by the recent Global Climate Stocktake report issued by the United Nations, which underlined the urgency of the climate emergency faced by humanity, as well as the need for action.

“What the world needs now, at this critical time for our planet and humanity, is leadership,” continued Rowan. “It is high time for industry and political leaders to be strong and decisive, and deliver meaningful policies and actions to fight climate change. We’re committed to doing our part and encourage our peers as well as political leaders around the globe to do theirs.”

Earlier this year, Volvo opened orders for the EX30, its smallest-ever SUV and a “cornerstone” in its plans to go fully electric from 2030. This will be joined in the coming months by the EX90, a fully electric seven-seat SUV that will sit at the top of the EV line-up.