Volvo Revamps Plug-In Hybrid Strategy, Eyes Longer Electric Range

Volvo is shifting gears on its electric vehicle strategy, planning a renewed push into plug-in hybrid vehicles (PHEVs) despite previously aiming to go fully electric by 2030. The Swedish automaker is now focusing on extending the electric range of its PHEVs, as reported by Motor Authority.

Volvo’s New PHEV Strategy

Volvo’s chief product and strategy officer, Erik Severinson, revealed in an interview with Automotive News that the upcoming PHEVs will boast a “significant upgrade” in electric range compared to the current models. The 2025.5 XC90 T8, for instance, offers 32 miles of electric range, but the new generation is expected to far exceed this.

Severinson highlighted the flexibility of Volvo’s SPA platform, which debuted nearly a decade ago in the current XC90. The new PHEVs will benefit from denser batteries and more efficient electric motors developed for next-generation EVs.

“SPA1 is a very flexible architecture,” Severinson said. “We can keep upgrading SPA1 to even longer-range PHEVs.”

Upcoming Launches

While Severinson didn’t specify a timeline, Volvo announced at a recent meeting with U.S. and Canadian dealers that it plans to launch 10 new and updated vehicles over the next 24 months. Some of these are likely to be the longer-range PHEVs, as reported by Automotive News.

Volvo’s current plan aims for 90-100% of its sales to be EVs and PHEVs by 2030, with the remaining portion consisting of mild-hybrids. This shift comes in response to slower-than-expected EV demand and dealer requests to keep PHEVs on sale.

Commitment to EVs

Despite the renewed focus on PHEVs, Volvo remains committed to becoming a 100% EV brand in the long term. The automaker has at least five EVs in the pipeline, including the midsize sedan ES90 and the compact crossover EX60. The ES90 will use the SPA2 EV platform that debuted in the 2025 EX90 and is expected to launch this year. The EX60 will use a more advanced SPA3 EV platform and is tipped to launch in 2026.

EVXL’s Take

Volvo’s strategic shift highlights the importance of flexibility in the transition to electric vehicles. While the ultimate goal is a fully electric future, PHEVs serve as a crucial bridge, offering consumers a taste of electric driving without the range anxiety. This approach aligns with the broader industry trend, as seen in recent developments from Tesla and GM. As we move forward, it’s clear that a multi-faceted approach will be key to widespread EV adoption.

What are your thoughts on Volvo’s new PHEV strategy? Leave your comments below!

Photos courtesy of Volvo.