Volvo Cars Adjusts EV Target, Hybrids to Remain in Lineup
Swedish automaker Volvo Cars has revised its target for fully electric vehicles, announcing that it now expects to still offer some hybrid models in its lineup by 2030. This shift comes amidst slowing demand for electric vehicles due to factors such as affordability and charging infrastructure limitations.
The company's new goal is for 90% to 100% of its cars sold by 2030 to be either fully electric or plug-in hybrid models, with up to 10% being mild hybrids. Volvo Cars emphasizes the importance of plug-in hybrids for future profit growth and plans to revamp its hybrid XC90 model.
This adjustment marks a departure from Volvo's previous commitment to selling only fully electric cars by 2030. The company currently offers three electric models – the EX90, EX30, and EX40 – and had planned to launch a new electric car each year.
The decision to retain hybrid models reflects a broader trend in the automotive industry. Growing demand for hybrids, driven by affordability and convenience, has prompted several automakers to reconsider their initial plans to phase out hybrids in favor of fully electric vehicles.
Volvo Cars, majority-owned by China's Geely, attributes its revised target to changing market conditions and customer demands. The company expects electrified cars, including both full EVs and hybrids, to account for 50% to 60% of its sales volume by 2025.
Despite the shift towards hybrids, Volvo Cars remains committed to an electric future. CEO Jim Rowan emphasizes the company's belief in an electric future but acknowledges the need for a more gradual transition due to varying customer and market readiness.
The company also calls for stronger government policies to support the electrification of transportation. This call comes amidst ongoing efforts by several countries to encourage automakers to phase out internal combustion engines and reduce carbon emissions.
Volvo's revised target reflects the evolving landscape of the automotive industry, where both electric and hybrid vehicles are likely to play a role in the transition towards a more sustainable future.