Volvo has revised its previous commitment to exclusively offer electric vehicles (EVs) by 2030, a promise initially made in 2021. The Geely-owned Swedish automaker has updated its goal due to evolving market conditions and shifting customer preferences. The new target is for 90 to 100% of its global sales by 2030 to comprise fully electric vehicles and plug-in hybrids, essentially vehicles with chargeable batteries.
The company will now permit a small portion, up to 10%, of its lineup to include mild hybrid models if necessary, diverging from its prior all-electric vision for 2030. Despite a slight deceleration in the electric vehicle market—largely due to an oversupply compared to demand—Volvo remains committed to transitioning away from internal combustion engines (ICEs). Currently, Volvo offers five electric models and has another five in development, aiming for electrified vehicles to make up 50 to 60% of their offerings by 2025.
Volvo plans to have a comprehensive range of electric vehicles available well before the decade ends, with the flexibility to fully embrace electrification when market conditions are more favorable. The company is steadfast in its long-term objective of becoming entirely electric and achieving net-zero greenhouse gas emissions by 2040.
Jim Rowan, CEO of Volvo Cars, affirmed the company’s dedication to electric vehicles, citing their superior driving experience and the advanced technologies they enable. However, he acknowledged that the transition to electrification will be gradual, varying by market and consumer adoption rates. Challenges such as delayed charging infrastructure rollouts, reduced government incentives, and recent EV tariffs have contributed to this slower pace.
Volvo’s current lineup includes both the all-electric EX90 and the XC90, which continues to offer mild and plug-in hybrid options. This strategy reflects Volvo’s aim to balance its portfolio, providing diverse choices for customers while advancing towards full electrification.