Automobile

Volvo To Become Electric-Only Brand 2030

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2 months ago

September 6, 2024

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Volvo was one of the first automakers to promise an electric-only lineup, with that initial announcement coming in March 2021.

At the end of May this year, Volvo’s CEO said that the EV-only portfolio was still “very achievable”. At that moment, Jim Rowan was “convinced” that Volvo could stop selling vehicles with internal combustion engines in just five years.

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However, during the company’s most recent quarterly report to investors held at the end of July, the CEO acknowledged that full electrification will take time. In other words, the initial goal of becoming an all-EV brand by 2030 may not be achieved.

Now, at the beginning of September, Volvo is officially adjusting its electric targets. The new goal is for plug-in hybrids and electric cars to account for 90-100% of annual sales by the end of the decade. Volvo admits cars without charging ports are likely to stay longer than originally estimated, but only “a limited number of mild hybrid models”.

The company believes that several factors have contributed to the slower adoption of electric vehicles than expected. The development of charging infrastructure is progressing at a slower pace. In addition, some countries have either reduced or eliminated incentives for electric vehicles. Volvo also blames newly implemented tariffs on electric cars in certain markets.

Volvo hopes that PHEV and EV models will account for 50-60% of deliveries by 2025, up from 48% during the second quarter of this year. From April to June, fully electric cars accounted for 26% of total deliveries. The company plans to continue investing in mild hybrid and plug-in hybrid models as part of its “strategic adjustments” to better adapt to what people want.

Volvo is the latest in a long line of automakers to back away from their original electric goals. In recent months, we’ve seen Porsche, Mercedes, Bentley and Ford delay their aggressive electric plans in Europe.