Volvo Cars will get rid of all car models with internal combustion engines by 2030, including hybrids.
The automaker is also preparing to invest heavily in online sales and simplifying its products.
It is attempting to capitalize on increasing demand for electric cars, including in China, which is already among the biggest markets.
Automakers are also responding to pressure from governments across the world to beef up their electric vehicle plans.
New cars and vans powered entirely by petrol and diesel will not be sold in the UK from 2030, for a name.
Volvo’s chief technology officer, Henrik Green, said the automaker required to switch focus: “There is no long-term future for cars with an internal combustion engine.”
Its online push means consumers will be able to order cars to their own specifications online, but through a dealership as well.
The automaker will not be investing in cars with hydrogen fuel cells, as it does not think there will be sufficient demand from customers. There is also a question mark over hydrogen’s availability in comparison with charging points for electric vehicles.
Volvo earlier announced that by 2025, half of its sales would be entirely electric, with the rest being hybrids.
Last month, Volvo abandoned plans to merge with Chinese automaker Geely. But the two automakers said that they would form a partnership instead to make components for electric vehicles that would be used by both automakers.