Volvo Abandons Its Promise to Rely Solely on Electric Vehicles by 2030

Volvo has recently become the latest automaker to backtrack on its plans to fully transition to electric vehicles. While the company had aimed for this transition by 2030 and actively promoted it until August 28, its plans have changed significantly.

Just before unveiling the updated XC90, Volvo announced that it is adjusting its ambitions regarding electric vehicles. Under the new plan, the company now targets only 90% to 100% of its vehicles to be electric by 2030. This means there will be a mix of plug-in hybrids and electric vehicles, along with the possibility of retaining mild hybrids.

The automaker attributed the change to “market conditions” and stated that it remains “committed to a fully electric future.” The company added that 26% of sales in the second quarter came from electric vehicles, while 48% came from hybrids.

Volvo will continue to develop plug-in hybrids and mild hybrids to ensure that a “balanced portfolio serves as a clear bridge to a fully electric future.” While this is not the direction the company desires, they stated that the change was necessary due to the slower-than-expected rollout of charging infrastructure, the withdrawal of government incentives in some markets, and the uncertainty caused by recent tariffs on electric vehicles. The latter is a subtle hint that production plans in China have backfired, leading to delays in the launch of the EX30 in the U.S.

In a statement, Volvo CEO Jim Rowan said, “We are serious in our belief that our future is electric,” as it “provides a superior driving experience and increases the potential to leverage advanced technologies that enhance the overall customer experience.” However, he acknowledged that “the transition to electric will not be quick, and customers and markets are moving at different speeds of interest in electric vehicles.”