To underline its commitment to full electrification ambitions, Volvo Cars announced at Climate Week NYC the end of production of all diesel-powered Volvo passenger car models by early 2024. In a few months, the last diesel-powered Volvo car will have been built, making Volvo Cars one of the first legacy carmakers to take this step.

The milestone follows Volvo Cars' decision to fully exit the development of new combustion engines. In November 2022 the manufacturer sold its stake in Aurobay, the joint venture company that harboured all of its remaining combustion engine assets. Volvo has stated it will no longer spend any R&D budget on developing new internal combustion engines.

“In New Zealand, we took the decision to remove diesel from our line up in 2020," says Ben Montgomery, Volvo Cars New Zealand General Manager. "We were the first of the premium automakers segment to do so locally. With Volvo all-in on electrification, locally, we are already selling 30% pure electric cars and with our all-new Volvo EX30 arriving next year that is only set to grow.”

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Volvo Cars says that with its ambitious electrification target, it hopes to inspire other companies to be bolder in taking action against climate change.

It states its decision to completely phase out diesels by early 2024 illustrates how rapidly both the car industry and customer demand are changing in the face of the climate crisis.

Only four years ago, the diesel engine was Volvo's bread and butter in Europe, as was the case for most other carmakers. The majority of cars sold on the continent in 2019 were powered by a diesel engine, while electrified models were only just beginning to make their mark.

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That trend has largely inverted itself since then, driven by changing market demand, tighter emission regulations as well as auto manufacturer focus on electrification.

Volvo says the majority of its sales in Europe now consists of electrified cars, with either a fully electric or plug-in hybrid powertrain. Less diesel cars on the streets also has a positive effect on urban air quality; while diesels emit less CO2 than petrol engines, they emit more gases such as nitrogen oxide (NOx) that have an adverse effect on air quality especially in built-up areas.