Volvo Cars scraps 2030 goal to be fully electric

FRANKFURT

Volvo Cars has said it would not meet its 2030 goal to be fully electric due to a lack of infrastructure to support EVs, scaling back its target to between 90 and 100 percent.

The company cited "a slower-than-expected rollout of charging infrastructure, withdrawal of government incentives in some markets and additional uncertainties created by recent tariffs on EVs in various markets."

"Full electrification remains a key pillar of Volvo Cars' product strategy," it said, but that would not be possible by 2030 due to "changing market conditions and customer demands."

The Chinese-owned automaker announced its plans to go fully electric in 2021.

It said its new target would allow for 0-10 percent of its sales to include a "limited number of mild hybrid models to be sold, if needed."

Volvo Cars currently has five fully electric cars on the market and another five models in development.

It said it expects its electrified products to make up between 50 and 60 percent of its line-up by 2025, and a complete line-up of fully electric cars available "well before the end of this decade."

"That will allow Volvo Cars to make the move to full electrification as and when the market conditions are suitable."

Its share of fully electric cars stood at 26 percent during the second quarter of 2024, it said, "the highest share among all its premium peers".

Its electrified share, which counts EVs and plug-in hybrids, accounted for 48 percent, it said.