Volvo Cars has dropped its plan to only sell electric vehicles by 2030, setting a new EV sales target of a minimum 90 per cent.
Volvo Cars said in a statement on Wednesday that it now aimed for at least 90 per cent of cars sold by the end of the decade to be fully electric or plug-in hybrid models, while up to 10 per cent would be so-called mild hybrids, where electric power only supplements the combustion engine."We are resolute in our belief that our future is electric," CEO Jim Rowan said.
Major automakers have seen slowing demand for EVs partly due to a lack of affordable models and the slow roll-out of charging points, while also bracing for the effects of European tariffs on electric cars made in China.Volvo Cars, which is majority-owned by Chinese conglomerate Geely, sells a mix of electric and hybrid cars, and had until now remained steadfastly committed to its plans to only sell fully electric cars by 2030 even as its rivals began scaling back their ambitions.
By 2025, Volvo Cars now expects electrified cars — both full EVs and hybrids — to account for between 50 per cent and 60 per cent of sales volumes. The previous 2025 target was for at least 50 per cent fully electric cars, with the rest hybrids.