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As the world grapples with the urgent need to decarbonize transportation, the role of commercial vehicles has become increasingly crucial. Volvo Group, one of the industry’s leading innovators, is at the forefront of this transformation, driven by the vision and expertise of its Chief Technology Officer, Lars Stenqvist.
In an exclusive interview with Munro Live, Lars Stenqvist provided a comprehensive look into Volvo Group’s strategic approach to sustainable mobility, shedding light on the company’s latest advancements in electric, hydrogen, and renewable fuel-powered commercial vehicles.
Stenqvist’s insights reveal a future where a diverse array of powertrain technologies will coexist, each tailored to the unique needs of different regions and applications. “We will see much more variety going forward when it comes to power trains,” he explains. “We will see different needs in different regions of the world.”
Pioneering Electric Heavy-Duty Trucks
One of the key areas of focus for Volvo Group has been the development of electric heavy-duty trucks. As Stenqvist notes, the company was an early mover in this space, recognizing the potential of electrification in the commercial vehicle segment.
“We saw it coming around 2015, 16, and in the Volvo Group, it started with the bus city bus organization saying this makes sense,” Stenqvist explains. “My engineers already by then they designed the electrical components in a very, very smart way with standardized interfaces to the different vehicle types. So when the market demand was occurring on the truck side, it was rather easy to take the components that once was designed for buses and put them into the trucks.”
This foresight and strategic planning have allowed Volvo Group to emerge as a clear market leader in electric heavy-duty trucks. And not just in North America, but in Europe as well. “We were the pioneers, and that is the reason why we are the clear market leaders in both Europe and North America when it comes to electric trucks,” Stenqvist proudly states.
Embracing Fuel Cell Electric Vehicles
While battery-electric vehicles have been a primary focus, Volvo Group is also investing heavily in the development of fuel cell electric vehicles (FCEVs) powered by hydrogen. Stenqvist explains the company’s rationale for this dual-pronged approach:
- “We go battery electric as we said, we go fuel cell electric than based on hydrogen, but we also have been super clear all the time that there is also a future for combustion engines for the long for a long time. We don’t have an end date for combustion engines, but then running on renewable fuels.”
This multi-faceted strategy reflects Volvo Group’s commitment to providing a range of sustainable powertrain options to meet the diverse needs of its customers. By investing in both battery-electric and fuel cell technologies, the company is positioning itself to lead the transition to zero-emission mobility across various commercial vehicle applications.
Investing in Combustion Engine Advancements
Contrary to the common perception that combustion engines are a sunset technology, Stenqvist reveals that Volvo Group has been heavily investing in the continued development of these powertrains. In fact, 2024 was a record year for the company’s investments in combustion engine technology.
“There’s so much potential still there,” Stenqvist explains. “The future, we will have three parallel powertrain technologies: fuel cells on hydrogen, battery-electric vehicles, and combustion engines running on renewable fuels, including hydrogen also running combustion engines.”
This balanced approach highlights Volvo Group’s strong commitment to sustainability. By offering a comprehensive suite of solutions, the company can address the unique requirements of different regions and applications. Furthermore, the company embraces a diverse range of powertrain technologies. This ensures customers have access to the most suitable options for their specific needs.
Addressing the Charging and Fueling Infrastructure Challenge
Volvo Group continues to advance its electric and hydrogen-powered vehicle platforms. The company is also taking action. It is actively addressing the critical challenge of building the necessary charging and fueling infrastructure. This support is essential for the success of electric and hydrogen technologies.
Stenqvist acknowledges that the infrastructure equation is not just about the vehicles themselves. It’s also about the availability of energy and a robust supply network. “We have engaged ourselves, for example, in Europe, where we have created a joint venture together with two of our competitors,” he explains. “The joint venture is called Mefin, with the purpose of starting setting up a charging infrastructure for heavy-duty trucks.”
In the United States, Volvo Group has also joined consortia to influence and stimulate the buildout of charging infrastructure. This, they recognize, is a crucial piece of the puzzle. “Without charging infrastructure, no trucks; without trucks, no charging infrastructure,” Stenqvist says. “Someone needs to get started here.”
Volvo Group takes a proactive approach by collaborating with industry partners, aiming to tackle the infrastructure challenge. As a result, the transition to electric and hydrogen-powered commercial vehicles becomes more seamless and accessible for customers.
Embracing Partnerships and Collaboration
Over the past few years, Volvo Group’s approach to innovation and technology has evolved significantly. Instead of relying solely on a specification-driven model, the company now emphasizes strategic partnerships and collaboration. This shift reflects a broader commitment to agility and shared progress.
“Nowadays, when we are introducing so much new technology into the portfolio, it’s impossible to do those kind of detailed specifications,” Stenqvist explains. “Today, it’s very much about finding those ones that are interested in partnering up with you in a true partnership where you are going in the same direction in most cases without knowing exactly all details, but you share a vision.”
Volvo Group has adopted a new mindset—one that embraces collaboration to boost efficiency and scale. This shift has prompted the company to form partnerships even with competitors. A prime example is its joint venture with Daimler Truck. Known as cellcentric, the initiative focuses on developing and producing fuel cell stacks and balance-of-plant components.
“The reason for teaming up there is very simple: none of us had the volumes on our own in order to afford the heavy development. We didn’t have the volumes to get the right scale when it comes to production. So this then, you know, teaming up with a competitor in order to stay competitive was the solution here,” Stenqvist explains.
Volvo Group has taken a similar approach with another strategic partnership. Together with Daimler Truck, it launched a joint venture called Aurera. This venture focuses on developing a computational platform, including base software up to the operating system level. By working together, both companies can share the substantial investment needed for this core technology. At the same time, they preserve their competitive edge by independently developing customer-specific functions.
Volvo Group embraces a more collaborative approach to innovation. As a result, it can accelerate the development of critical technologies. This approach also helps the company leverage economies of scale. Most importantly, it ensures customers have access to advanced and sustainable commercial vehicle solutions.
Autonomous Driving: The Next Frontier in Commercial Vehicles
While much of the discussion around autonomous driving has focused on passenger vehicles, Stenqvist emphasizes that this technology holds immense potential for commercial vehicles as well. In fact, he believes that autonomous driving makes even more sense in the commercial sector than in the consumer market.
“Autonomous driving really makes sense in commercial vehicles, maybe more sense at least according to me than in passenger cars, because we have the business case, and in many parts of the world, if not all parts, there is a lack of drivers today, and we see increased demand for transport going forward,” Stenqvist explains.
Volvo Group is no longer in the demonstration or pilot project phase when it comes to autonomous commercial vehicles. The company is now in the serial development stage, with vehicles already operating in autonomous mode and carrying commercial freight, albeit with a safety driver on board.
“We have one more milestone to go, and it’s really replacing the safety driver, and we are well underway. That is the next and the final step before we start to roll it out,” Stenqvist reveals.
Volvo Group is turning to autonomous driving technology to tackle a major industry challenge: the driver shortage. By integrating autonomy into commercial vehicles, the company also aims to boost overall transportation capacity. This strategic focus highlights Volvo’s commitment to innovation and efficiency in the heavy-duty vehicle sector.
Conclusion: Shaping the Future of Sustainable Mobility
Lars Stenqvist, Volvo Group’s Chief Technology Officer, offers a clear vision for the future of sustainable commercial transportation. He highlights the company’s pioneering efforts in both electric and hydrogen-powered trucks. At the same time, Volvo maintains a balanced approach to powertrain technologies. Through this strategy, the company positions itself as a leader in the shift toward zero-emission mobility.
Volvo Group is taking bold steps to meet the evolving demands of the transportation industry. The company embraces strategic partnerships, invests in advanced autonomous driving technologies, and tackles critical infrastructure challenges. Through these efforts, Volvo reinforces its commitment to innovation and to delivering sustainable transportation solutions for customers and the broader market.
As the world continues to grapple with the urgent need to decarbonize transportation, the insights and strategies shared by Lars Stenqvist offer a compelling roadmap for the future of commercial vehicles. Volvo Group’s holistic approach to sustainable mobility is poised to shape the industry’s trajectory and pave the way for a more sustainable and efficient transportation ecosystem.
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