Powering the Future of Commercial Vehicles

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 underscores Volvo Group’s commitment to providing a comprehensive suite of sustainable solutions, catering to the unique requirements of different regions and applications. By embracing a diverse range of powertrain technologies, the company is ensuring that its customers have access to the most suitable options for their specific needs.

Addressing the Charging and Fueling Infrastructure Challenge

As Volvo Group continues to advance its electric and hydrogen-powered vehicle platforms, the company is also actively addressing the critical challenge of building the necessary charging and fueling infrastructure to support these 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, recognizing that this 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.”

By taking a proactive approach and collaborating with industry partners, Volvo Group is working to address the infrastructure challenge and ensure that the transition to electric and hydrogen-powered commercial vehicles is seamless and accessible for its customers.

Embracing Partnerships and Collaboration

Volvo Group’s approach to innovation and technology development has evolved significantly in recent years, moving away from a highly specification-driven model to one that emphasizes strategic partnerships and collaboration.

“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.”

This shift in mindset has led Volvo Group to forge partnerships with competitors in areas where joint development can drive greater efficiencies and scale. One such example is the company’s joint venture with Daimler Truck, called cellcentric, which is focused on the development and production of 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.

Similarly, Volvo Group has established a joint venture with Daimler Truck called Aurera, which aims to develop a computational platform, including base software up to the level of the operating system. This collaboration allows the companies to share the significant investments required for this foundational technology, while still maintaining their competitive edge in the development of customer-specific functions.

By embracing a more collaborative approach to innovation, Volvo Group is able to accelerate the development of critical technologies, leverage economies of scale, and ensure that its customers have access to the most 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.

By leveraging autonomous driving technology in commercial vehicles, Volvo Group aims to address the driver shortage challenge and increase the overall capacity of the transportation system. This strategic focus on autonomous solutions for commercial applications underscores the company’s commitment to driving innovation and efficiency in the heavy-duty vehicle sector.

Conclusion: Shaping the Future of Sustainable Mobility

Volvo Group’s Chief Technology Officer, Lars Stenqvist, has provided a comprehensive glimpse into the company’s vision for the future of sustainable commercial transportation. From its pioneering work in electric and hydrogen-powered trucks to its balanced approach to powertrain technologies, Volvo Group is positioning itself as a leader in the transition to zero-emission mobility.

By embracing strategic partnerships, investing in cutting-edge autonomous driving solutions, and addressing the critical infrastructure challenges, Volvo Group is demonstrating its commitment to driving innovation and delivering sustainable transportation solutions that meet the evolving needs of its customers and the broader industry.

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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