Volvo Cars has abandoned its plan to manufacture only electric vehicles by 2030.

“Volvo Cars is committed to becoming a leader in the fast-growing premium electric car market and plans to become a fully electric car company by 2030,” the company stated in 2021.

However, the Sweden-based vehicle manufacturer said “changing market conditions” and “customer demands” caused a change in target.

“While Volvo Cars will retain its position as an industry leader in electrification, it has now decided to adjust its electrification ambitions due to changing market conditions and customer demands,” the company stated Wednesday.

Volvo Cars “aims to reach net zero greenhouse gas emissions by 2040.”

GOOD! RT: Sweden's Volvo Cars scraps plan to sell only electric vehicles by 2030 https://t.co/uutZvLEmkc

— Darrell B. Harrison (@D_B_Harrison) September 4, 2024

Per Volvo Cars:

Going forward, Volvo Cars aims for 90 to 100 per cent of its global sales volume by 2030 to consist of electrified cars, meaning a mix of both fully electric and plug-in hybrid models – in essence, all cars with a cord.

The remaining 0-10 per cent will allow for a limited number of mild hybrid models to be sold, if needed. This replaces the company’s previous ambition for its line-up to be fully electric by 2030.

By 2025, it expects the percentage of electrified products to come in between 50 and 60 per cent. Well before the end of this decade Volvo Cars will have a complete line-up of fully electric cars available. That will allow Volvo Cars to make the move to full electrification as and when the market conditions are suitable.

Volvo Cars’ share of fully electric cars stood at 26 per cent during the second quarter of 2024, the highest share among all its premium peers. Its electrified share – EVs and plug-in hybrids – accounted for 48 per cent.

Volvo Cars abandons 2030 EV-only target ⚡️

Swedish automaker Volvo Cars scrapped its target of going all electric by 2030 on Wednesday, saying it now expected to still be offering some hybrid models in its lineup at that time.

Major automakers have seen slowing demand for EVs… pic.twitter.com/9REk37Du54

— GrainStats 🌾 (@GrainStats) September 4, 2024

Reuters reports:

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.

Shares in the company were down 7.5% at 1416 GMT, after hovering around 4% lower ahead of the announcement of scaled-back targets.

Volvo Cars said in the statement that by 2030 it now aimed for between 90% and 100% of cars sold to be fully electric or plug-in hybrid models, while up to 10% would be so-called mild hybrids, where electric power only supplements the combustion engine.

Volvo Cars said in a separate statement that plug-in hybrids would be a critical part of its future profit growth, and that it would revamp its hybrid XC90, with first customers receiving the SUV by the end of the year.