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Volvo Cars’ choice to ease its ambitious goal of achieving 100% electric vehicle (EV) sales by 2030 could reflect the broader challenges facing the European automotive industry today. The Swedish automaker, owned by Geely, was one of the pioneers in committing to such a target back in 2021, a move soon followed by Mercedes-Benz and Renault, while BMW and Volkswagen set less aggressive goals of 50% and 80%, respectively. Enthusiasm for EVs surged, leading to a record number of new EV registrations in Europe in 2023, totaling 3.2 million—an increase of 20% compared to the previous year, as reported by the International Energy Agency.
Nonetheless, early 2024 brought significant economic hurdles and a saturation of the early adopter market, causing a noticeable slowdown in momentum. As a result, hybrid vehicle sales began to rise as customers sought cleaner yet more cost-effective options. The transition to battery EVs has taken longer than anticipated, and ongoing strategic evaluations have confirmed the more conservative targets set by BMW and Volkswagen.
The European Automobile Manufacturers Association (ACEA) noted that hybrids accounted for 32% of new vehicle sales as of July 2024, marking a 6.5% increase from the previous year. Mild hybrids were the only electrified powertrain category to show growth, prompting automakers to expand their offerings. In August, Porsche acquired a controlling interest in V4Drive, a battery manufacturer that supplies cells for its hybrid Porsche 911 Carrera GTS. Does this shift back to older technologies suggest that interest in battery EVs is waning in Europe?
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