XC40 was Volvos first BEV SUV, part of an EV and PHEV model line now sub-branded Recharge

XC40 was Volvo's first BEV SUV, part of an EV and PHEV model line now sub-branded Recharge

Volvo Cars said it was committed to becoming a leader in the fast-growing premium electric car market and planned to become a fully electric car company by 2030.

By then, the company intends to only sell fully electric cars and phase out any car in its global portfolio with an internal combustion engine, including hybrids.

The company's move towards becoming a fully electric car maker is part of an ambitious climate plan which seeks to consistently reduce the life cycle carbon footprint per car "through concrete action".

The decision also builds on its expectation legislation, as well as a rapid expansion of accessible high quality charging infrastructure, will accelerate consumer acceptance of fully electric cars.

The Geely-owned automaker's move towards full electrification comes along with an increased focus on online sales and a "more complete, attractive and transparent consumer offer" branded Care by Volvo. All fully electric models will be available only online.

The 2030 target is an acceleration of Volvo Cars' earlier-announced electrification strategy, driven, it said, by strong demand for its electrified cars in recent years and "a firm conviction that the market for combustion engine cars is a shrinking one".

"To remain successful, we need profitable growth. So instead of investing in a shrinking business, we choose to invest in the future – electric and online," said Hakan Samuelsson, chief executive. "We are fully focused on becoming a leader in the fast growing premium electric segment."

Volvo noted it had launched its first [volume sale] fully electric car, the XC40 Recharge, worldwide last year [a decade ago it offered a C30 Electric in low volume to select customers in select markets - ed].

The company is now launching its second fully electric car, a new model for its 40 series.

Several additional electric models are due in the next few years with more to follow those. By 2025, Volvo Cars aims for half of its global sales to consist of fully electric cars with the rest hybrids. By 2030, every car it sells should be fully electric.

"There is no long term future for cars with an internal combustion engine," said CTO Henrik Green. "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."