Volvo Cars’ Chief Executive Officer, Jim Rowan, says the company remains committed to be a fully electric car business as the latest offering, the EX-90, continues to receive worldwide acclaim as the best SUV EV ever built.

Speaking after the launch of the all-new, all-electric and all-exciting EX90 SUV in California earlier this month, Rowan expects the car to be a game changer for the company and one that will drive significant growth.

“I can confidently say that the EX90 is the best car we have ever made,” he said. “After driving it for 950 kilometres through three states (from the production plant in Charleston, South Carolina to California) in the US in various driving conditions and road surfaces, I only have positive memories.

“The charging, the handling, the ride comfort, the silence of the cabin and the epic sound system, the reliability, the tech and the feel of the UI – I’ve never driven a Volvo car like it.

“The EX90 is the start of a new era for Volvo Cars and it begins now.”

With five fully electric cars (EVs) already on the market and another five models in development, full electrification remains a key pillar of Volvo Cars’ product strategy and what Rowan expects the company to grow on the back of.

Rowan said it is Volvo’s long-term aim to become a fully electric car company and it also aims to reach net zero greenhouse gas emissions by 2040.

“We are resolute in our belief that our future is electric,” he said. “An electric car provides a superior driving experience and increases possibilities for using advanced technologies that improve the overall customer experience.

“However, it is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds of adoption.

“We are pragmatic and flexible, while retaining an industry-leading position on electrification and sustainability.”

Rowan said while Volvo Cars will retain its position as an industry leader in electrification, it has now decided to adjust its electrification ambitions due to changing market conditions and customer demands.

He said going forward, Volvo Cars aims for 90 to 100 per cent of its global sales volume by 2030 to consist of electrified cars, meaning a mix of both fully electric and plug-in hybrid models – in essence, all cars with a cord.

The remaining 0-10 per cent will allow for a limited number of mild hybrid models to be sold, if needed. This replaces the company’s previous ambition for its line-up to be fully electric by 2030.

By 2025, it expects the percentage of electrified products to come in between 50 and 60 per cent. Well before the end of this decade Volvo Cars will have a complete line-up of fully electric cars available.

He said that will allow Volvo Cars to make the move to full electrification as and when the market conditions are suitable.

Volvo Cars’ share of fully electric cars stood at 26 per cent during the second quarter of 2024, the highest share among all its premium peers. Its electrified share – EVs and plug-in hybrids – accounted for 48 per cent.

Rowan said Volvo Cars remains committed to its long-term ambition of full electrification, and the company’s long-term investment plan and product strategy remains geared towards fully electric cars.

He said the adjustment to its ambitions is not expected to have any material impact on the company’s capital expenditure plans.

Since the company laid out its ambition to go fully electric, it has launched five fully electric models: the EX40, the EC40, the EX30, the EM90 and the EX90.

The EX30 is currently ranked as the third best-selling EV in Europe, according to the latest available industry data, while the EX90 is firmly the hottest SUV in the global market.

At the same time, according to Volvo, there has been a slower than expected rollout of charging infrastructure, withdrawal of government incentives in some markets and additional uncertainties created by recent tariffs on EVs in various markets.

“With this in mind, Volvo Cars continues to see the need for stronger and more stable government policies to support the transition to electrification,” according to Volvo.

As a result of its adjusted ambitions on electrification, the company is also updating its ambitions on CO2 reduction, which remain leading for the automotive industry.

By 2030, the company aims to have reduced CO2 emissions per car by 65-75 per cent compared to a 2018 baseline, an adjustment of the previous 75 per cent reduction ambition.

For 2025, the company aims for a 30-35 per cent reduction versus a 2018 baseline, instead of the previous aim of a 40 per cent reduction.

Rowan said Volvo Cars plans to make further progress, including by working with its suppliers to continue to reduce CO2 emissions from materials across the company’s value chain.

During the first half of the year CO2 emissions per car were 25 per cent lower compared with its 2018 benchmark.

He said with the small EX30 SUV continuing to perform strongly and the first customers of the fully electric Volvo EX90 flagship receiving their cars during this month (September), the excitement about the opportunities for Volvo Cars’ fully electric product range is stronger than ever.

According to the company, Volvo Cars has also seen the popularity of its plug-in hybrids grow, with the XC60 the best-selling plug-in hybrid model in Europe this year, according to industry data.

“Plug-in hybrids provide customers with an opportunity to experience electric driving if they are not yet ready or able to switch to fully electric cars,” according to Volvo.

Many of the company’s plug-in hybrid customers already travel widely on zero tailpipe emissions, Volvo says.

Volvo Cars’ most recent data shows that around half of the kilometres covered by the latest plug-in hybrid Volvo cars are driven on pure electric power.

As such, the company says it will continue to upgrade its plug-in hybrids, to further increase electric usage and range, and improve the customer experience.