Volvo has dialled back its target of being a 100% fully electric car maker by 2030.
Now it is aiming for 90% to 100% of its global sales volume by 2030 to consist of “electrified” cars, meaning a mix of both fully electric and plug-in hybrid models, in essence, all cars with a cord.
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The automaker has five fully electric cars (EVs) already on sale and another five in development and insisted “full electrification remains a key pillar of [our] product strategy”. Its long-term aim remains to become a fully electric car company, and it also aims to reach net zero greenhouse gas emissions by 2040.
However, it has now decided to adjust its electrification ambitions “due to changing market conditions and customer demands”.
The remaining 0%-10% will allow for a limited number of mild hybrid models to be sold, if needed.
By 2025, the automaker expects the percentage of electrified products to be between 50% and 60% and will have a complete line of fully electric cars available by the end of this decade.
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By GlobalData“That will allow Volvo Cars to make the move to full electrification as and when the market conditions are suitable.”
The share of fully electric cars was 26% in the second quarter of 2024 while electrified models accounted for 48%.
Volvo Cars said its “long-term investment plan and product strategy remains geared towards fully electric cars. The adjustment to ambitions is not expected to have any material impact on the company’s capital expenditure plans”.
The automaker said there had been a slower than expected rollout of charging infrastructure, withdrawal of government incentives in some markets and additional uncertainties created by recent tariffs on EVs in various markets.
“With this in mind, Volvo Cars continues to see the need for stronger and more stable government policies to support the transition to electrification.”
“We are resolute in our belief that our future is electric,” said CEO Jim Rowan.
“An electric car provides a superior driving experience and increases possibilities for using advanced technology which improves the overall customer experience.
“However, it is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds of adoption. We are pragmatic and flexible, while retaining an industry-leading position on electrification and sustainability.”
The company also revised its ambitions on CO2 reduction and, by 2030, aims to have reduced CO2 emissions per car by 65%-75% compared to a 2018 baseline, a downward adjustment of the previous 75% target.
For 2025, it aims for a 30%-35% reduction versus a 2018 baseline, instead of the previous 40%.
During the first half of the year CO2 emissions per car were 25% lower.
Deliveries of the EX90 flagship EV have just begun after software related delays.
