CEO Håkan Samuelsson in February revealed that Volvo has already stopped allocating funds for further development of internal combustion technology.
Instead, Volvo will launch the next-generation S60 with four-cylinder engines and two plug-in hybrid powertrains.
This new commitment will begin with the launch of the S60, which will not be available with a diesel powertrain, just petrol and hybrid.
Volvo has announced that its upcoming new S60 saloon will not be sold with a diesel engine.
"Our future is electric, and we will no longer develop a new generation of diesel engines".
That said, even petrol engines will eventually be phased out, with Volvo referring to the hybrid models as a "transitional" stepping stone on the road to full electrification. The announcement was made at the 2018 Beijing Auto Show, positioning it as a powerful player in China, the world's leading market for electrified cars. Mild hybrid versions will follow next year. The S60's estate sibling, the V60, was launched earlier this year in Stockholm.
A switch away from diesel cars could cause problems for authorities trying to meet Carbon dioxide emissions targets, as petrol cars typically emit more Carbon dioxide.
He said lower fuel consumption was the "only advantage of diesel", but that "you can get that back with a mild-hybrid engine". While Toyota Motor Corp. and Nissan Motor Co. earlier chose to phase out diesel choices altogether amid declining demand, diesel sales made up 70 percent for Volvo in Europe previous year.
Production of the new S60 will start this fall at Volvo Cars' brand new manufacturing facility outside Charleston, South Carolina.
Volvo has cited the mounting complication and costs of emissions regulation standards for a decision to ditch diesel form all future products as it moves towards an EV future. Specific options for the United States will be announced at a later date.