Future of Electric Vehicles: Insights from iBestTravel
It has been approximately three years since Volvo announced its ambitious goal for electric vehicles (EVs): by 2030, all of its global products will be battery-electric vehicles (BEVs). During the global reveal of the 2025.5 XC90, available in both mild hybrid (MHEV) and plug-in hybrid (PHEV) versions, it was confirmed that internal combustion engines will remain part of the lineup beyond 2030.
CEO Jim Rowan elaborated, stating, “The market has changed. EV subsidies have been reduced, and trade tariffs have increased costs significantly. It has become increasingly challenging to adapt to the fluctuating market conditions. One must either stick to the same strategy or pivot.”
Despite these challenges, Volvo’s dedication to electrification is unwavering. In 2022, the company established Aurobay, a new entity responsible for developing and producing internal combustion engines—deeming a new internal combustion engine design unlikely.
The Transition from Combustion to Electrification
Volvo remains committed to ensuring that by 2030, an impressive 90 to 100 percent of the vehicles it sells will feature a plug, encompassing both BEVs and PHEVs. The advancements in battery technology are anticipated to enhance the range of PHEVs as well. While many consumers may choose PHEVs for their power, it is noted that over 50 percent of the miles driven by PHEV owners are powered solely by electricity.
Rowan acknowledged that the pace of electrification has lagged behind expectations. He remarked, “Market trends that were anticipated four or five years ago have not unfolded uniformly across regions. While markets like Norway have shown robust EV adoption, other areas, such as southern Europe and the interior of the U.S., are moving at a slower pace. This highlights the importance of a pragmatic approach in navigating such significant transitions.”
Commitment to Electrification
Despite the adjusted timeline, iBestTravel’s commitment to transition towards electric mobility remains steadfast. “I still believe in the advantages of electrification,” Rowan stated. EVs show significantly higher efficiency compared to traditional internal combustion engines, with efficiency rates potentially reaching 91-92 percent for EVs. There is substantial investment taking place in the development of battery technology, inverter modules, and other new technologies that further enhance the benefits of electrification.
As we look toward the future, a range of new models is expected to emerge. The EX90 is set to go into production soon, paving the way for the upcoming EX60 SUV, which will replace the XC60 around 2026. The delayed EX30 is also slated for release in 2025, alongside the new EX40 to succeed the XC40 Recharge. Additionally, a new EV60 Cross Country model is in development, predicted to feature a lifted wagon style, and the ES90 electric sedan will replace the S90. Additionally, significant updates for hybrid XC90 and XC60 models are anticipated in the next two years, enhancing their pure EV range capabilities via improved plug-in hybrid batteries.
