Volvo Delays the End of Gas Engines: Combustion Still Here to Stay

Despite early promises to go fully electric, Volvo will continue using gasoline engines, relying on plug-in hybrids and extended-range EVs as a bridge toward electrification.

Volvo’s EV Ambitions vs Reality

Initially, Volvo pledged in 2021 to become fully electric by 2030, leading the industry’s EV race. However, sales numbers tell a different story: through September 2025, EV sales dropped 21% year-over-year, while plug-in hybrids fell slightly by 1%. Combined, electric and PHEV models accounted for just 44.2% of total sales, showing the combustion engine is far from obsolete.

The Role of Plug-In Hybrids

CEO Håkan Samuelsson confirmed that Volvo will continue offering gas-powered engines at least until the end of the decade, with plug-in hybrids acting as a transitional technology. Vehicles like the reborn XC70 demonstrate this approach, featuring a 39.6 kWh battery with 112 miles of electric range (CLTC cycle), suitable for long trips while still keeping the combustion engine as a safety net.

Extended-Range EVs: The Second Generation of Hybrids

Volvo is also exploring Extended-Range Electric Vehicles (EREVs), where the combustion engine serves only to generate electricity for the battery. Samuelsson calls this the “second generation of hybrids,” combining electric driving with backup engine reliability, addressing range anxiety without the need for massive batteries. Models like the future XC90 replacement are expected to adopt this EREV strategy around 2028.

The Future of Gas Engines at Volvo

While diesels are gone, gasoline engines will remain in Volvo’s lineup for another 15 years. This measured approach allows the Swedish brand to navigate different regional regulations, technological development, and customer readiness, proving that the combustion engine still plays a strategic role even as the industry shifts toward electrification.

Conclusion: Bridging Tradition and Innovation

Volvo’s strategy demonstrates a pragmatic balance between electrification and legacy powertrains. By leveraging PHEVs and EREVs, the company ensures customers retain flexibility and confidence while gradually transitioning to a fully electric future, making the combustion engine far from obsolete—for now.