Volvo Abandons Target for Fully Electric Cars by 2030, Shifts Focus to Hybrids
In a surprising move, car company Volvo has announced that it will no longer be aiming to produce only fully electric cars by 2030. Instead, the Swedish automaker now plans to include hybrid vehicles in its lineup by that date.
The decision to change course comes as Volvo cited changing market conditions as the reason for abandoning its previous target, which was set just three years ago. The company acknowledged a slowdown in demand for electric vehicles (EVs) in some major markets and uncertainty surrounding trade tariffs on EVs made in China.
Volvo now expects that at least 90% of its output will consist of electric cars and plug-in hybrids by 2030. Additionally, the company may also introduce a small number of mild hybrids, which are more traditional vehicles with limited electrical assistance.
Jim Rowan, chief executive of Volvo, emphasized the company’s commitment to electric vehicles, stating, “We are resolute in our belief that our future is electric. However, it is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds.”
The decision by Volvo to shift its focus away from solely electric cars reflects a broader trend in the industry, with other major carmakers like General Motors and Ford also scaling back their EV ambitions. Ford recently announced the scrapping of plans for a large, all-electric SUV and the postponement of its next electric pick-up truck, while General Motors has been reducing its EV production goals.
The move by Volvo highlights the challenges facing the EV market, including a slow rollout of charging infrastructure, the withdrawal of consumer incentives, and concerns among consumers about the higher cost of electric vehicles. Additionally, the imposition of tariffs on Chinese-made EVs in Western countries has further complicated the landscape for car manufacturers.
As the automotive industry continues to navigate these challenges, Volvo’s decision to adjust its electrification strategy underscores the need for flexibility and adaptation in the rapidly evolving market for electric vehicles.
