Volvo was one of the first automakers to promise an electric-only lineup. If you recall, the original announcement was made in March 2021. At the end of May 2024, Volvo's CEO said an EV-only portfolio is still "very achievable." At that point, Jim Rowan was "confident" Volvo could end sales of vehicles with combustion engines in just five years.
However, during the most recent quarterly investor webcast held in late July, the automaker's CEO admitted that it'll "take time to bridge different parts of the world for full electrification." In other words, the initial goal to become a pure EV brand by 2030 might not be achieved. Fast forward to early September, Volvo is now officially readjusting its lofty electric goals.
The new target is for plug-in hybrids and electric cars to account for 90-100% of annual sales by the end of the decade. Volvo concedes cars without charging ports are likely to stick around longer than initially estimated, but only a "limited number of mild hybrid models."
The Swedish marque believes several factors have contributed to the slower-than-projected adoption of EVs. The development of the charging infrastructure is progressing at a slower pace. In addition, some countries have either reduced or completely eliminated incentives for EVs. Volvo also blames newly applied tariffs on electric cars in certain markets.
Volvo hopes cars with a charging cord (PHEVs+EVs) will account for 50-60% of deliveries by 2025, up from 48% during the second quarter of this year. From April through June, fully electric cars accounted for 26% of total shipments. The company's plan is to continue investments in mild-hybrid and plug-in hybrid models as part of its "strategic adjustments" to better reflect what people want.
In the long run, Volvo still wants to reach net zero greenhouse gas emissions by 2040.
Volvo is the latest in a long string of automakers to backtrack from its original electric goals. In recent months, we've seen the likes of Porsche, Mercedes, Bentley, and Ford of Europe push back their aggressive electric agendas.
