In the face of “changing market conditions,” the short-term mix instead now includes plug-in and mild hybrids
- Volvo is backing off on its initial goal of offering an all-electric lineup by 2030
- The mix will now include plug-in hybrids and, if necessary, up to 10% mild hybrids
- The move is based on “changing market conditions and customer demands”
It also noted that there has 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.”
Instead of selling only electric cars by 2030, as it originally announced in 2021, Volvo has now scaled that back to 90% to 100% being electrified — and that’ll be a mix of electric vehicles (EVs) and plug-in hybrids (PHEVs). While a PHEV runs on electricity after it’s been charged, it still has a gasoline engine and uses that when the charge depletes.
If those don’t make it all the way to 100% of sales, then the remaining 1% to 10% will “allow for a limited number of mild hybrids to be sold, if needed,” Volvo said in a statement. A mild hybrid system uses electricity to provide fuel-free assistance to the gasoline engine, but the vehicle can’t drive on electricity alone.
The automaker said its long-term aim is still to become fully electric, and to reach net zero greenhouse gas emissions by 2040. It has five EVs on the market globally, with another five in development. Its share of EVs was 26% globally in the second quarter of 2024, which it said is the highest among its premium rivals; and its share of electrified vehicles, meaning EVs and PHEVs, was 48%. By 2025, it expects 50% to 60% of its sales to be electrified models.
“An electric car provides a superior driving experience and increases possibilities for using advanced technologies that improve the overall customer experience,” said Jim Rowan, CEO of Volvo Cars. “However, it is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds of adoption.”
Cutting back on EVs also means adjusting the CO2 emissions targets. Volvo had set a goal of 40% reduction by 2025 when compared to a 2018 baseline, but that is now adjusted to 30% to 35%. Its longer-term goal of a 75% reduction by 2030 is now set at 65% to 75%.
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