Volvo has joined a growing list of automakers curtailing their EV ambitions in the wake of lower than expected growth in demand for the vehicles.
Volvo in 2021 said it planned to exclusively sell EVs by 2030, but on Wednesday the automaker said it now aims for 90-100% of its sales to be made up by a combination of EVs and plug-in hybrids by that date.
This means Volvo may still be selling gas cars by 2030, though these will only be 10% or less of total sales, and they will all be mild hybrids, the automaker said.
Volvo also said its long-term goal remains becoming a 100% EV brand. The automaker is also readying five additional EVs at present, including a midsize sedan to be called the ES90.
The five new EVs, plus the five Volvo already sells, means the automaker will have a full EV lineup and be ready to be a pure EV brand should the market situation change, the automaker said.
Volvo was among the first of the legacy automakers to fully commit to electrification when in 2017 it said its entire lineup would consist purely of mild-hybrid, plug-in hybrid, and EVs by 2020. In 2021, it made its commitment to become an EV brand by 2030.
However, growth in EV demand has been slowing while the opposite has been the case for plug-in hybrids in many markets. Automakers like Cadillac, Hyundai, Mercedes-Benz, and Porsche have also recently backtracked on their EV plans, and are investing in new gas and plug-in hybrid models for the next decade.
CEO Jim Rowan also told Automotive News in July that mild-hybrid and plug-in hybrid powertrains are an ideal bridging technology for customers not ready to make a switch to an EV, and that Volvo will continue to invest in the technology. The automaker also on Wednesday unveiled an updated XC90 featuring mild-hybrid and plug-in hybrid powertrains.
