STOCKHOLM
Swedish automaker Volvo Cars has revised its ambitious goal of going fully electric by 2030. In a statement released on Wednesday, the company announced a shift in strategy, acknowledging the need to offer a mix of electric and hybrid vehicles for the foreseeable future.
This revision comes amidst a wider trend within the automotive industry. Several major automakers have encountered challenges in pushing for complete electrification, including slower-than-expected EV adoption rates. Factors like higher upfront costs for EVs, limited charging infrastructure availability, and concerns about driving range have contributed to this phenomenon.
Volvo Cars, which is majority-owned by China's Geely, emphasises that its revised target allows for 90-100% of its sales to be either fully electric or plug-in hybrid models by 2030. However, the company acknowledges that a limited number of mild hybrid vehicles may still be offered if market conditions necessitate.
While Volvo was previously unwavering in its commitment to an all-electric future by 2030, this shift reflects the complex market dynamics. The growing popularity of hybrid cars, with their advantages of affordability and convenience, has prompted many automakers to re-evaluate their electrification strategies. The slower rollout of charging infrastructure further strengthens the case for hybrids as a viable option for many consumers in the near term.
Volvo Cars attributes its decision to changing market conditions and evolving customer demands. The company also highlights the need for "stronger and more stable" government policies to support the transition towards electric mobility. These policies could include incentives for EV buyers and investments in a robust charging network.
While Volvo adjusts its immediate timeline for complete electrification, the company's commitment to a sustainable future remains steadfast. By offering a mix of EVs and hybrids, Volvo aims to navigate the current market realities while paving the way for a more comprehensive EV transition in the future.