Volvo has revised its plan to transition fully to electric vehicles (EVs) by 2030. The automaker now anticipates that between 90%-100% of its cars sold by the end of the decade will either be electric vehicles or hybrids, while up to 10% of sales will comprise of mild hybrids, where electric power supplements a combustion engine.
This shift reflects a broader trend among major automakers, including Tesla, General Motors, Ford, and Toyota, who have also recently scaled back their electric vehicle targets.
Volvo’s decision to reconsider its EV plans comes several months after CEO Jim Rowan had predicted “tremendous growth” in the EV market.
“We are resolute in our belief that our future is electric,” Rowan said in a statement about the company’s recent EV cutbacks. “However, it is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds.”
Volvo has also adjusted its short-term goals. Initially, the company aimed for fully electric vehicles to comprise at least 50% of its sales by 2025. The updated target now includes both EVs and hybrids, which together are expected to account for 50%-60% of sales.
The market responded swiftly to the news, with Volvo’s shares dropping by 7.5% on Friday, Sept. 6, following the announcement. Despite this, Volvo maintains that its revised strategy better aligns with current market dynamics and consumer preferences.
