Volvo has announced a significant adjustment to its electrification goals, backing away from its initial goal to transition to an entirely electric lineup by 2030. Volvo joins other automakers walking back their EV targets, citing slower than anticipated EV adoption, and external challenges such as inadequate charging infrastructure and the removal of government incentives in some regions.
In a statement released on Wednesday, Volvo outlined its revised target, which now aims for 90-100% of global sales by 2030 to consist of “electrified” vehicles. This includes both fully battery electric cars, as well as plug-in hybrids (PHEVs). The Swedish automaker said up to 10% of their lineup will continue to feature mild hybrid models, which combine internal combustion engines (ICEs) with limited electric support.
Back in 2021 Volvo initially said it planned to phase out all vehicles with internal combustion engines, including hybrids, by the end of the decade.
Jim Rowan, CEO of Volvo, explained the shift in strategy, saying that while the company remains committed to electrification, the transition is proving to be more complex than they initially expected.
“We are resolute in our belief that our future is electric. However, it is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds of adoption,” Rowan said.
Volvo’s shift has been influenced by multiple market factors. The automaker noted slower than expected progress in the development of charging infrastructure, as well as the withdrawal of government incentives for EVs in certain markets. Additionally, new tariffs on electric vehicles, particularly those produced in China, further contributed to their decision.
Volvo is not along in revising their electrification targets. Other automakers, including Mercedes-Benz and Ford, have also recently shifted their goalposts.
Despite these challenges, Volvo has already introduced five fully electric models, including the EX40, EC40, EX30, EM90, and EX90, with another five in the pipeline.
Volvo has also revised its carbon emissions reduction targets. By 2030, the company now aims to reduce CO2 emissions per vehicle by 65-75%, compared to its previous goal of 75%, using 2018 as a baseline. For 2025, the target has been adjusted to a 30-35% reduction, down from 40%.
