Volvo gives up plan to sell only EVs by 2030
Volvo has announced it will no longer aim to produce exclusively fully electric vehicles by 2030, now planning to include some hybrid models by that time.
The shift comes in response to evolving market conditions, including decreased demand for electric vehicles (EVs) in key markets and uncertainties surrounding trade tariffs on Chinese-made EVs.
This change of direction follows similar adjustments by other major car manufacturers like General Motors and Ford, which have also scaled back their EV goals.
Volvo now anticipates that at least 90% of its production will consist of electric cars and plug-in hybrids by 2030. Additionally, the company might offer a limited number of mild hybrids, which combine traditional engines with some electric support.
Jim Rowan, Volvo’s CEO, stated, “We remain committed to an electric future, but it’s evident that the transition will not be straightforward, with varying speeds among customers and markets.” The company also pointed to a shifting business environment for EVs, including slower development of charging infrastructure and reduced consumer incentives.
Volvo is majority-owned by Chinese car giant Geely and because it uses factories in China, it will also be affected by tariffs on imports of Chinese-made EVs in Europe and North America.
Last week, Canada announced it was imposing a 100% tariff on imports of China-made electric vehicles, after similar announcements by the US and the EU.
Western countries have accused China of subsidizing its EV industry, giving its car makers an unfair advantage.
China has rejected those allegations and criticized the tariffs as “discriminatory”.
Ford has also been scaling back on its EV ambitions. Just last month, the US car giant announced it was scrapping plans for a large, three-row, all-electric sport utility vehicles (SUVs) and postponing the launch of its next electric pick-up truck.
Its rival General Motors has also been cutting EV production goals in the last year.
