Volvo vindication! Swedish brand confirms it is well over 50 per cent electrified in Australia as it plans to go electric-only by 2026

Volvo, which made the dramatic announcement that it would go fully electric by 2026 in Australia, making a point that Australian buyers were ready for this level of technology, has seemingly been vindicated by its latest sales figures.

Speaking to CarsGuide Volvo’s communications boss, Greg Bosnic, confirmed that the brand’s electrification plans were well on-track, and that its lead model, the XC40, is now 55 per cent electric as a share of sales. Based on the latest VFACTS figures, this would mean the XC40 Recharge Purely electric has sold more than 1000 units so far this year.

Last year, the XC40 managed to sell over 10,000 units for the first time in its history.

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It’s a major coup for the brand’s stylish small SUV, which originally started out as a combustion-only model back in 2018, and has since been converted to a plug-in hybrid, and now a fully electric version. The plug-in hybrid was pulled from sale last year due to the popularity of the fully electric variant. 

The XC40 is now the most popular SUV in its class, capturing 27.4 percent of the premium small SUV bracket, outselling the Audi Q3, Mercedes-Benz GLA, BMW X1, and Lexus UX.

Similarly, the C40 fully electric crossover is off to a roaring start so far in Australia, after launching late last year. It has amassed nearly 400 units so far this year, which is far from the top of its segment, but ahead of rival newcomer, the Genesis GV60.

Volvo is currently supply-constrained, with Bosnic confirming every single C40 which hits the ground is selling instantly. He confirmed the entry-level C40 single-motor variant would be available during this quarter if ordered now, while the more popular dual-motor variant if ordered now would be delivered sometime during Q3.

The C40 fully electric crossover is off to a roaring start so far in Australia. (Image: Tom White)

Electric versions of both the C40 and XC40 will be heavily updated later this year, with a new primarily rear-drive layout, improved efficiency for a longer driving range, improved power outputs, faster charging capabilities and other minor updates.

This rear-drive swap will also be mirrored by the XC40 and C40’s Polestar 2 cousin. All will arrive in Australia before the end of 2023.

Not all is rosey at Volvo, however, with the XC60 mid-sizer down nearly 40 per cent in the sales charts so far this year. Bosnic confirmed this was a supply issue, as well as a ‘combination’ of other factors, but predicted sales will improve throughout the rest of the year.

He added Volvo’s ‘Recharge’ sub-branded models, which encapsulates both its fully electric C40, XC40, and plug-in hybrid XC60 and XC90 now constituted 53 per cent of the brand’s overall sales, up from 44 per cent last year.

The EX90 is one of the first three of five new fully electric Volvo models to be launched by 2026.

Next year will see the launch of Volvo’s fully electric XC90 replacement, the EX90, which will debut a new SEA platform for the Swedish brand, which it shares with its Geely parent in China, and a sub-XC40 all-electric SUV is also on the way, dubbed the EX30.

The C40, EX90 and EX30 are the first three of five new fully electric Volvo models to be launched by 2026, leaving room for a fully electric version of the XC60 and at least one other model for the brand.

What that mystery model could be? Volvo managing director, Stephen Connor, has pointed to the popularity of wagons in Europe, as well as the popularity of sedans in China as a hint to the direction the brand could move in.