The carmaker, owned by Chinese automotive giant Geely, has yet to build a single fully electric car but already sells five plug-in hybrid models that can run a few dozen miles on battery power before switching to a conventional engine.
There will still be some hybrid vehicles, which use a traditional motor alongside an electric one. But the company will also focus on fully electric cars.
The pricing of those models suggests drivers will pay a premium for future Volvo cars – the basic plug-in hybrid version of its XC90 SUV crossover costs $ 79.695, $ 17.129 more than the basic diesel edition.
Several of the major carmakers, including Renault-Nissan, BMW and VW, have declared ambitious plans for electric cars, supported with grants by governments, which see them as a key way of tackling air pollution and climate change.
Describing the decision as "one of the most significant moves by any car maker", Volvo said that by 2019 it will make a range of cars, none of which will be powered purely by a combustion engine.
The VW emissions scandal gave added impetus for companies to focus on the technology, as politicians and campaigners increasingly blamed diesel for cities’ air quality problems.