Volvo to Stop Selling Petrol Cars in Australia by 2026

Volvo Cars electric car model, Volvo C40 Recharge, in Stockholm, Sweden, on March 2, 2021. Claudio Bresciani/TT News Agency/AFP via Getty Images

Chinese-owned Swedish auto giant Volvo will stop selling petrol vehicles in Australia by 2026, four years earlier than its global target to transition to electric vehicles (EV) by 2030.

Stephen Connor, managing director of Volvo Australia, said the move would give the carmaker a “strategic advantage” in the market.

“There is no long-term future for cars with an internal combustion engine. So instead of investing in a shrinking business, we choose to invest in the future, which is fully electric,” he said on Nov. 3.

“Globally, Volvo is firmly committed to becoming an electric-only car maker by 2030 but in Australia, we will make the transition happen by 2026,” he added.

Connor said by 2025 the company expected around 80 percent of its Australian sales to be EV cars, conceding that convincing the last 20 percent of its customers to switch would be a challenge. It is aiming to sell 20,000 EVs per year.

Volvo cars are seen on the forecourt of a Volvo dealership in Reading, west of London, United Kingdom on March 2, 2021. Ben Stansall/AFP via Getty Images

Volvo car sales increased 63 percent in September 2022 and are the fifth-highest-selling premium car brand in the country. It will launch five new EV models from now until 2026.

The move was lauded by the Electric Vehicle Council with CEO Behyad Jafari saying it demonstrated the potential Australia had to be a “world leader in the transition” to EVs.

“The market is clearly ready to accelerate the electrification of Australia’s fleet. Our state and federal governments should be doing everything they can to support this momentum,” he said in a statement.

Businesses Pushing Hard for Net Zero

The announcement comes after 100 companies including IKEA Australia, Uber, Europcar, Hertz, MG, Woolworths, and AGL together called for a revamp of Australia’s EV policies with the aim of putting one million EVs on the road by 2027.

The initiatives come as the Labor government pushes the country to rapidly decarbonise the economy while closing down coal-fired power stations to be replaced by renewable energy sources.

Yet the rapid push has attracted criticism from the opposition concerned businesses could re-locate offshore if energy prices continue to rise.

“What do they achieve in the end if they close these businesses down? You’re talking about companies who employ tens of thousands of Australians,” he told 2GB on Nov. 3.

“There’s no environmental gain and all that happens is that we lose the jobs here in Australia. The companies couldn’t be any clearer: they’re happy to reduce their emissions and they’re working on all those strategies. But it’s just too radical a path that the prime minister is taking us down.”