Volvo drops 2030 all-electric target.

Volvo has recently adjusted its electric vehicle (EV) goals, moving away from its initial plan to sell only fully electric cars by 2030 due to sluggish demand for EVs.

The Swedish carmaker had announced its intention to go fully electric back in March 2021, but now acknowledges the need to adapt its electrification strategy to align with market conditions and customer preferences. Factors such as the slow expansion of charging infrastructure, changes in government incentives, and uncertainties surrounding tariffs on EVs in various markets have influenced this decision.

Instead of aiming for 100% fully electric sales by the end of the decade, Volvo now targets for 90 to 100% of its global sales volume by 2030 to consist of electrified cars, which includes both fully electric and plug-in hybrid models. The remaining 0-10% will accommodate a limited number of mild hybrid models if necessary.

Despite the revised timeline, Volvo remains committed to becoming a fully electric car company ultimately and strives to achieve net zero greenhouse gas emissions by 2040.

By 2025, Volvo anticipates that 50 to 60% of its product lineup will be electrified, with a full range of electric cars planned well before the end of the decade to facilitate a transition to full electrification when market conditions are favourable.

While focusing on the development of electric vehicles, Volvo will continue to invest in plug-in and mild hybrid models to offer a balanced portfolio as a bridge to an all-electric future.

In the second quarter of 2024, Volvo’s share of fully electric cars reached 26%, reportedly the highest among its premium competitors, with electrified vehicles, including EVs and plug-in hybrids, accounting for 48% of its sales.

The adjustment to Volvo’s EV-only target is not anticipated to have a significant impact on the company’s capital expenditure plans.

Since announcing its electrification ambitions, Volvo has introduced five fully electric models, including the EX40, EC40, EX30, EM90, and EX90, with the EX90 commencing deliveries recently.

Jim Rowan, the chief executive of Volvo Cars, emphasised the company’s commitment to the electric future, stating, “We are resolute in our belief that our future is electric. An electric car offers an enhanced driving experience and enables the incorporation of advanced technologies that enhance the overall customer journey.”

Despite the emphasis on electric vehicles, Volvo has noted the growing popularity of its plug-in hybrid models, with the XC60 being the best-selling plug-in hybrid in Europe this year, according to industry data.

In response to Volvo’s concerns about charging infrastructure, David Hall, vice president of power systems at Schneider Electric UK&I, highlighted the need for increased investment in charging stations to support the growing number of EVs on the roads.

He commented, “To drive forward the adoption of EVs and pave the way for a low-carbon future, we must work towards enhancing our infrastructure and accessibility. Investing in the installation of EV chargers on a significant scale is crucial in creating sustainable roads for the future.”

Volvo’s decision to adjust its electrification goals reflects a pragmatic and flexible approach to navigating the evolving landscape of electric vehicles, ensuring a sustainable transition to a greener future while prioritising customer needs and market dynamics.