Volvo Adjusts 2030 EV-Only Pledge, Focuses on Delivering What Customers Want, Says CEO Rowan

Volvo’s 2021 commitment to exclusively producing electric vehicles (EVs) by 2030 seemed daring despite the rapid rise of EVs. However, as EV growth has recently moderated and hybrid sales—once deemed outdated—have surged, many automakers face a reality check. Toyota’s chairman Akio Toyoda, for instance, appears vindicated in his skepticism.

Given these shifting trends, Volvo is revising its stance on becoming an all-electric automaker by 2030. CEO Jim Rowan now suggests that the Swedish automaker, under Geely’s ownership, might extend its hybrid offerings beyond the initial deadline.

In a recent update, Volvo has adjusted its target to achieve 90-100% of global sales from fully electric and plug-in hybrid vehicles by 2030. The company will permit up to 10% of sales to come from internal combustion engine (ICE) mild hybrids.

“We’re not rigid about our 2030 goal. The priority is to deliver products that meet our customers’ needs. While we are prepared to transition fully to electric vehicles within this decade, we may need to extend this timeframe if market readiness and consumer adoption lag,” Rowan explained during the launch of the new XC90 at the 90/90 event.

Volvo’s revised strategy includes ongoing hybrid development. “The shift to electrification won’t be uniform. As customer preferences and market conditions vary, we’ll continue to enhance our hybrid lineup to cater to all stages of electric vehicle adoption,” Rowan added.

The new XC90 exemplifies this strategy. While the all-electric EX90 began production in June and is on its way to customers, it has not replaced the XC90, which still features a 2.0-liter turbo petrol engine alongside hybrid options. The T8 PHEV variant offers up to 71 km of electric-only range.

This flexible approach aims to accommodate diverse customer needs while maintaining a balanced portfolio as Volvo progresses towards full electrification.