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- Volvo no longer anticipates becoming a completely electric vehicle brand by 2030
- The manufacturer now targets having 90-100% of its sales comprised of both electric vehicles and plug-in hybrids by that time
- Volvo remains dedicated to electric vehicles, with five new models currently in development
Volvo has become part of an increasing number of automakers scaling back their electric vehicle ambitions due to lower than expected demand.
Initially, in 2021, Volvo committed to selling only electric vehicles by 2030. However, the company updated its goal on Wednesday, now aiming for 90-100% of its sales to consist of a mix of electric vehicles and plug-in hybrids by that target year.
This implies that Volvo may still offer gasoline-powered cars by 2030, although these would represent no more than 10% of total sales and would all be mild-hybrids, according to the company.
Despite the change, Volvo reiterated its long-term ambition to transition to a fully electric vehicle brand. The company is also preparing to launch five new electric models, including a midsize sedan designated as the ES90.
2025.5 Volvo XC90
The introduction of these five new electric models, combined with the five that Volvo already offers, will give the manufacturer a comprehensive electric vehicle lineup, enabling it to pivot to a fully electric brand if market conditions permit, the company stated.
Volvo was one of the early adopters among established automakers in fully committing to electrification, announcing in 2017 that its entire lineup would include only mild-hybrids, plug-in hybrids, and electric vehicles by 2020. In 2021, it reaffirmed its goal to transition to an all-electric brand by 2030.
However, the demand for electric vehicles has been declining, while interest in plug-in hybrids has been growing in several markets. Other manufacturers, including Cadillac, Hyundai, Mercedes-Benz, and Porsche, have recently revised their electric vehicle strategies, opting to invest in new gasoline and plug-in hybrid models for the upcoming decade.
The shift at Volvo is not surprising, as dealerships, especially in the U.S., have been advocating for the retention of plug-in hybrids in the product mix. CEO Jim Rowan also mentioned to Automotive News in July that mild-hybrid and plug-in hybrid technologies serve as suitable transitional options for consumers who are not ready to switch to electric vehicles. Additionally, Volvo revealed an updated version of the XC90 that features both mild-hybrid and plug-in hybrid powertrains.
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