Volvo has announced a shift in its strategic goals, moving away from its previous target of producing exclusively electric cars by 2030.
The car company now plans to include hybrid vehicles in its lineup by that time, citing evolving market conditions as the reason for revising a target set just three years ago.
This adjustment occurs amid a broader industry trend where a slowdown in electric vehicle demand and new trade tariffs on Chinese-made EVs create market uncertainty.
Despite its long-standing commitment to environmental sustainability, Volvo now aligns with other major manufacturers like General Motors and Ford, both of which have also scaled back their electric vehicle initiatives.
Volvo anticipates that electric and plug-in hybrid vehicles will comprise at least 90% of its production by 2030.
Additionally, the Swedish company might offer a limited number of mild hybrids, which combine traditional combustion engines with minimal electric support.
“We are resolute in our belief that our future is electric,” said Jim Rowan, chief executive of Volvo, in a statement.
“However, it is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds.”
Volvo noted that changing factors, including the slower development of charging networks and the reduction of consumer subsidies, have impacted the business environment for electric vehicles.
Owned by the Chinese automotive giant Geely, Volvo faces new challenges from tariffs imposed on Chinese-produced EVs in markets like Europe and North America.
Following the EU and the US, Canada recently imposed a 100% tariff on Chinese-made electric vehicles.
Western nations have criticized China for allegedly subsidizing its electric vehicle sector, claiming it provides an unfair competitive edge—a claim China has vehemently denied and labeled the tariffs as “discriminatory.”
Similarly, Ford is revising its electric vehicle strategy, having recently canceled the development of a new large electric SUV and delayed its next electric truck.
Its rival, General Motors, has also adjusted its production targets for electric vehicles over the past year.
