Volvo Reverses Course: Plug-in Hybrids Will Stay Until the Late 2030s

The Swedish brand extends the life of combustion engines while developing its next generation of hybrids and EVs. The fully electric future will have to wait.

Volvo Delays the Farewell to Combustion Engines

For years, Volvo was one of the strongest advocates of full electrification, announcing back in 2021 that it would abandon internal combustion engines before the end of the decade. However, market realities, international regulations, and customer demand have forced the Swedish automaker to take a step back. According to CEO Hakan Samuelsson, the company “cannot dictate the end of combustion engines,” admitting that they will remain part of Volvo’s lineup until the late 2030s.

A Second Generation of Plug-in Hybrids

Volvo’s new strategy now focuses on a second generation of plug-in hybrid vehicles (PHEVs), serving as a bridge technology toward a fully electric future. Models like the XC70, which will return with a large 39.6 kWh battery and an estimated 200 km of zero-emission range, embody that transition. Although this figure is based on the optimistic Chinese CLTC cycle, the model promises greater efficiency than most SUVs in its segment.

The Return of the XC70 and the Evolution of the XC90

The reborn XC70 will first be sold outside China but has already been confirmed for Europe – although not before 2027, due to the need to comply with European safety and emissions standards. Meanwhile, the long-standing XC90, which recently received its second facelift, is set to be replaced around 2028 by a range-extended electric vehicle (EREV). This model will offer around 160 km of pure electric range, with the combustion engine acting solely as a generator.

EREV: Volvo’s “Second Generation” of Hybrids

Samuelsson believes that EREVs represent the logical evolution of the plug-in hybrid, eliminating “range anxiety” without relying on large, expensive batteries. In his words, it’s “an electric car with a combustion engine as backup,” a formula that could prove crucial in markets outside Europe where charging infrastructure is still developing.

The Gasoline Engine Isn’t Done Yet

While Volvo has already phased out diesel engines, the company plans to keep its gasoline powertrains for at least another 15 years. This marks a pragmatic shift within the automotive industry, as more manufacturers acknowledge that internal combustion still has a role to play in the transition to electrification. With its PHEV and EREV strategies, Volvo is not only adapting to the present but also laying the groundwork for a more realistic and sustainable electric future.