Volvo has announced its decision to discontinue the production of diesel cars by early 2024, said the automaker during Climate Week NYC. Volvo's decision is aligned with its goal of becoming an all-electric car manufacturer by 2030.
The company has already been paving the way for this transformation. Electrified cars now constitute most of Volvo's sales in Europe, marking a stark departure from the days when diesel engines held dominance. As of last August, the company showcased a surge in demand for cleaner vehicle options, with electric and hybrid models accounting for 33% of its total sales.
To put this into perspective, back in 2019, diesel models reigned supreme in Volvo's sales. However, subsequent years witnessed a noticeable decline, with 2022 seeing a mere 8.9% of its sales attributed to diesel cars. This decline mirrors a broader trend across Europe, where the market share of diesel vehicles plummeted from over 50% in 2015 to below 15%. This shift was largely driven by emissions scandals and industry efforts to embrace greener alternatives.
Jim Rowan, Volvo's Chief Executive, underscored the pressing nature of the climate emergency and urged industry and political leaders worldwide to take resolute and decisive action against climate change. "In a few months from now, the last diesel-powered Volvo car will have been built, making Volvo Cars one of the first legacy car makers to take this step,” he said.
Recently, Volvo launched the compact electric EX30, its SUV with the lowest carbon footprint. This environmentally-conscious unit offers two battery options: an LFP battery and an extended-range NMC battery. The pricing of the Volvo EX30 has captured considerable attention, starting at MX$649,900 (US$38,229), while Toyota promotes its Rav4 hybrid, considered a direct competitor to Volvo, at MX$773,700 (US$45,511).
In 2021, Clupp, an auto insurance company, conducted a study evaluating the depreciation rates of five car brands in Mexico over a five-year period. Volvo emerged as the leader in this aspect, boasting a depreciation rate of 63%, showcasing the brand’s attractiveness in the market. Following Volvo were Acura at 64%, Infiniti at 66%, BMW at 66% and Lincoln at 73%.