From 2019, new models introduced by the Swedish brand will only be available with electrified drivetrains. In addition to new fully electric models, petrol and diesel engines will be paired with either plug-in hybrid or 48V mild hybrid systems.
The move will help the company hit its self-imposed target of selling a total of one million electrified cars by 2025. As part of the push to minimise Volvo's environmental impact, the automaker will also ensure its manufacturing plants are climate neutral by 2025.
Hakan Samuelsson, CEO of Volvo Cars, stated this move "is about the customer". The CEO said "people increasingly demand electrified cars and we want to respond to our customers’ current and future needs".
The Geely-owned automaker claimed the announcement was "one of the most significant moves by any car maker to embrace electrification and highlights how over a century after the invention of the internal combustion engine electrification is paving the way for a new chapter in automotive history".
Beginning with the second-generation XC90, which was launched in 2014, all of Volvo's new cars have been powered exclusively by 2.0-litre four-cylinder petrol or diesel engines.
With the 2.0-litre petrol, the engine is paired with either a turbocharger, turbocharger and supercharger, or a supercharger and plug-in hybrid components.
Volvo Cars also promised to deliver five fully electric cars between 2019 and 2011, three of which will be for the core Volvo brand, while two will be for Polestar.
Two weeks ago, Volvo announced Polestar will be its own "separately-branded electrified global high performance car company”.
Details about the new electric vehicles will be announced at a later date.