Volvo Cars will continue selling plug-in hybrids (PHEVs) indefinitely rather than set a firm deadline for phasing them out, its CEO Hakan Samuelsson said in an exclusive interview released on Monday with The Independent.
Last year, the Swedish company sold 171,464 PHEVs worldwide, dropping 3% compared to 2024.
The executive admitted limitations of first-generation PHEVs.
“The plug-in hybrids are moving from being a totally conventional car where you put in some smaller batteries to have a better performance in a test cycle – I’m exaggerating a bit. That is, of course, not a very good way,” he said.
However, Samuelsson emphasized the role of this powertrain in the company’s electrification.
“So now we need to move into where the plug-in hybrid should be in an electric car, which has a backup engine when the batteries are flat. And that is the development we will see,” the Volvo Cars‘ CEO said.
“And then I think we have reached solutions till the last customer is ready to go electric,” he added.
The executive noted the financial reality shaping Volvo‘s electrification plans.
“This would of course be super costly to develop two parallel technologies – that’s why we say we put everything on all-electric and then, in a smart way, we develop together second-generation plug-in hybrids where I think XC70 is an indication of what those second-generation cars would look like,” he stated.
Samuelsson – who led Volvo Cars between 2012 and 2022 – returned in April 2025 as the company’s CEO and President for a two-year term, replacing Jim Rowan.
New PHEV Models
Last week, the Sweden-based brand held the global launch of its new EX60 SUV — the battery electric (BEV) version of the best-selling model XC60.
Speaking with the British media outlet The Independent, Samuelsson corroborated that Volvo Cars will be working with Geely Automobile Holdings to develop more PHEV models, since “developing something from scratch” would be “too expensive.”
Asked whether the XC60 SUV would be replaced by a new plug-in hybrid jointly developed with its parent company, Samuelsson said the Swedish automaker may combine efforts but declined to confirm specifics.
“Even a bestseller needs to have some kind of improvement. So, let’s see how that looks. But if you would do a new generation of that, it’s likely we will combine it in some way [with Geely], but I think it’s too early to talk about it,” the CEO said.
The executive said both the EX60 and EX90 models “are really selling well right now and are surprisingly timeless, both in design and quality.”
Earlier this month, Samuelsson told Automotive News Europe that he expects the brand — alongside German automakers Mercedes-Benz and BMW — to lead Europe “towards electrification.”
The two German brands will begin deliveries of their fully electric SUVs BMW iX3 and Mercedes GLC later this year.
PHEVs vs BEVs
According to Samuelsson, Volvo Cars‘ hybrid models have the same vehicle margin as its fully electric ones.
“We can now be very neutral because of our margin parity. So, if people want to go EX, no problem – it’s the same margin for us. And if they stay with a plug-in hybrid, let them stay,” the CEO stated.
Last year, Volvo Cars sold a total of 710,042 units globally, representing a 7% year-on-year decline.
Sales of PHEVs fell by 3% year-on-year to 171,464 units.
On the other hand, BEVs accounted for 151,830 vehicles – a 13% decrease compared to 2024.
EX60 Details
Launched globally last Wednesday, the EX60 is the first Volvo model built on the new SPA3 platform, which is “designed for longer range, efficiency and intelligent core computing” — according to the carmaker.
The EX60 became the model with the highest-ever range from Volvo.
It provides a maximum WLTP range of 810 kilometers (503 miles), reaching roughly 340 kilometers (211 miles) of range in approximately ten minutes.
The EX60 is also equipped with Google’s Gemini AI assistant and Volvo‘s HuginCore system.
In Sweden, the SUV is currently priced between 689,000 and 769,000 Swedish kronor – equivalent to $76,900–$85,800.
