Swedish automaker Volvo cars On Wednesday it abandoned its near-term goal of selling only electric vehicles, citing the need to be “practical and flexible” amid changing market conditions and cooling demand.
Volvo Cars, which is owned by China’s Geely Holding, was one of the first legacy carmakers to pledge a full switch to EVs. The company said its long-term aim is to become a fully electric car maker.
However, the company announced That by 2030 it now aims to sell 90% to 100% of its cars as fully electric or plug-in hybrid models, while allowing a limited number of mild hybrid models to 10%.
The goal is to change 2021 Pledge By the end of the decade Volvo’s car line-up will be completely electric.
The move means Volvo Cars follows in the footsteps of other industry players in scaling back its EV ambitions. German based car manufacturers Mercedes Benz Group And Volkswagen Both have previously announced changes to their respective EV strategies.
“Electric cars offer a superior driving experience and increase the possibilities of using advanced technologies that improve the overall customer experience,” Volvo Cars CEO Jim Rowan said in a written statement on Wednesday.
“However, it is clear that the transition to electrification will not be linear, and consumers and markets are moving at different speeds of adoption,” he continued.
“We are pragmatic and flexible, while maintaining an industry-leading position on electrification and sustainability.”
Shares of Volvo Cars traded more than 4% lower on Wednesday.
Volvo Cars said fully electric cars accounted for 26% of its line-up during the second quarter of 2024, noting that this was the highest level among its premium peers. It said the electrified share, which refers to EVs and plug-in hybrids, accounted for 48%.
Underscoring the challenges facing its electrification ambitions, Volvo Cars said the charging infrastructure, the withdrawal of government incentives in some markets and additional uncertainty have led to a slower-than-expected rollout. Recent tariffs on EVs in various markets.
Volvo Cars said the development shows the need for “stronger and more stable government policies”. Transition away from fossil fuels.
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