Major Automaker Shifts Gears, Abandons 2030 All-Electric Vehicle Target

Volvo Cars has revised its ambitious goal of transitioning to an all-electric lineup by 2030, announcing that it now plans to retain some hybrid models in its portfolio.

This shift comes amid slowing demand for electric vehicles (EVs) due to affordability concerns and charging infrastructure limitations. Kam-ooo0 / Wikimedia

The Swedish automaker, majority-owned by China's Geely, aims for 90% to 100% of its global sales volume to consist of fully electric and plug-in hybrid vehicles by 2030. RandomEuropean / Wikimedia

However, the company is now allowing for "a limited number of mild hybrid models to be sold, if needed," accounting for up to 10% of its lineup. Dinkun Chen / Wikimedia

This adjustment reflects broader industry challenges, including potential European tariffs on Chinese-made EVs and similar measures in the U.S.

Despite the revision, Volvo remains committed to electrification, with CEO Jim Rowan stating, "We are absolute in our belief that our future is electric." Alexander-93 / Wikimedia

Volvo's current electrified lineup, including EVs and hybrids, comprised 48% of its sales in the second quarter of 2024, with fully electric vehicles accounting for 26%.

The company expects this share to grow to between 50% and 60% by 2025. Tokumeigakarinoaoshima / Wikimedia

Rowan acknowledged the varying speeds of EV adoption across markets, saying, "It is clear that the transition to electrification will not be linear, and customers and markets alike are moving at different speeds of adoption. We are pragmatic and flexible, while retaining an industry-leading position on electrification and sustainability." Andersen EV / Pexels

The decision aligns with consumer trends, as drivers increasingly opt for hybrids due to range anxiety and charging infrastructure concerns. Andersen EV / Pexels

A J.D. Power study from May revealed that 52% of car shoppers cited charging station availability as the primary reason for diminished EV interest, up three percentage points from the previous year. Kindel Media / Pexels

Volvo emphasized that this strategic adjustment is not expected to significantly impact its capital expenditure plans, maintaining its long-term commitment to full electrification. Volvo Group / Wikimedia