The Swedish vehicle manufacturer now aims to have 90% to 100% of its global sales volume consist of electrified vehicles by 2030.
Volvo Cars has abandoned its goal of selling all-electric cars by the end of the decade, aiming for 90-100% of its global sales volume by 2030 to consist of electrified vehicles – that is, a mix of all-electric (BEV) and plug-in hybrid (PHEV) models.
In a statement, the Swedish manufacturer, a member of the Chinese Geely Group, explains that the remaining 10% of volume will be a limited number of mild hybrid models, if necessary. This replaces the company's previous ambition for its range to be fully electric by 2030.
Volvo thus becomes the latest manufacturer to backtrack on its electric vehicle ambitions due to declining demand for such cars.
Volvo says that by 2025, the percentage of electrified products is expected to be between 50% and 60%. Likewise, before the end of this decade, the brand warns that it will have a complete range of fully electric vehicles, which will allow it to make the leap to full electrification "when market conditions are right."
Volvo currently has five fully electric vehicles already on the market and another five models in development. Its long-term goal remains to become a fully electric vehicle company and it also aims to achieve net zero greenhouse gas emissions by 2040.
Volvo Cars’ share of the fully electric vehicle market stood at 26% in the second quarter of 2024, “the highest among all its premium competitors,” it says. Its share of electrified vehicles (BEVs and PHEVs) accounted for 48%.
Volvo also notes that it is continuing to develop its plug-in and mild hybrid vehicles, providing it with a balanced portfolio that serves "as a clear bridge to an all-electric future."
The manufacturer recalls that it has launched five fully electric models: the EX40, the EC40, the EX30, the EM90 and the EX90. The EX30 is currently the third best-selling electric vehicle in Europe, according to the latest available industry data.
CHANGES IN ITS CO2 REDUCTION TRAJECTORY
As a result of its adjusted electrification ambitions, the company is also updating its CO2 reduction ambitions.
By 2030, Volvo aims to have reduced CO2 emissions per car by 65-75% compared to the 2018 baseline, a downward adjustment from its previous reduction ambition of 75%.
By 2025, the company aims for a 30-35% reduction compared to the 2018 baseline, instead of the previous target of a 40% reduction.
SLOWER CHARGING INFRASTRUCTURE AND DECLINE IN DEMAND
Demand for electric cars has been cooling in Europe after countries such as Germany and Sweden suspended or reduced subsidies for the purchase of electric vehicles.
That has led manufacturers such as Mercedes-Benz and Volkswagen to scale back their EV ambitions, with the latter considering closing factories to cut costs.
Volvo also complains that the rollout of charging infrastructure has been slower than expected, and the withdrawal of government incentives in some markets "has created further uncertainties due to recent tariffs on electric vehicles in several markets."
Volvo therefore stresses the need for "stronger and more stable" government policies to support the transition to electrification.
