Volvo has announced that it will abandon its plans to only sell electric cars by 2030 amid falling demand for zero emission vehicles.
Volvo now aims to have 90 to 100 per cent of its global sales volume by 2030 to consist of electrified cars – meaning fully electric and plug-in hybrid models.
The remaining 10 per cent will allow for a “limited number” of mild hybrid models to be sold, if needed.
The Swedish brand clarified that full electrification remained a key pillar of Volvo Cars’ product strategy despite the U-turn earlier today.
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Volvo’s EX90 will begin deliveries later this year after lengthy delays
VOLVO
It still aims to become a fully electric car company, as well as committing to its goal of reaching net zero greenhouse gases by 2040.
By 2025, it expects the percentage of electrified products to come in between 50 and 60 per cent, although the brand will have a complete line-up of EVs before the end of the decade.
A statement from the brand confirmed that Volvo Cars would still make the move to full electrification “as and when the market conditions are suitable”.
Jim Rowan, chief executive of Volvo Cars, commented on the decision, saying: “We are resolute in our belief that our future is electric.”
“An electric car provides a superior driving experience and increases possibilities for using advanced technologies that improve 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.”
Rowan maintained that the brand was “pragmatic and flexible” with its industry-leading position on electric cars, despite the decision to ditch its original EV plans.
Volvo currently has five models on the market including the EX40, the EC40, the EX30, the EM90 and the EX90, with the EX30 being the third best-selling EV in Europe.
It blamed the U-turn on the “slower than expected” rollout of electric charging infrastructure, withdrawal of Government incentives and continued uncertainty over tariffs in the EU, the United States and Canada.
As part of its decision to move away from firm electric vehicle targets, Volvo called on Governments around the world to have more stable policies to support the transition to electric.
The UK is still unclear on certain policies, including when the sale of new petrol and diesel vehicles will be banned after Labour pledged to reinstate the original 2030 date. A Government spokesperson told GB News that a decision would be made “in due course”.
The brand also announced that it would start pushing out deliveries of its new EX90 SUV to the first customers before the end of September after lengthy delays.
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The Volvo EX90 will be the brand’s flagship EV
VOLVO
Its flagship vehicle will be delivered to the United States and Europe, before expanding to more markets in the first few months of 2025.
The EX90 has an electric battery range of 374 miles, a battery charging duration of 30 minutes and can travel from 0-62mph in just 4.9 seconds – despite having seven seats.