Volvo has revised its strategy for the transition to electric vehicles, planning to offer a hybrid-electric mix by 2030. The Swedish automaker announced that it has scaled back its goal of selling only electric vehicles by 2030, opting instead to allocate 10% of sales to plug-in hybrids over the next decade.
Volvo Abandons Its Plan for a Full Electric Transition by 2030
Volvo had previously committed to offering an all-electric product lineup by 2030. However, instead of moving entirely to electric vehicles, the company will now place a greater emphasis on hybrid models. The primary reason for this shift is the slowing demand for electric vehicles. Volvo expects that by 2025, 50-60% of its sales will come from a combination of electric vehicles and hybrids.
Volvo’s CEO, Jim Rowan, acknowledged that the transition to full electric won’t happen overnight, and the company will adapt to varying market conditions across different regions. Volvo is known for its S60 and S90 sedan models, as well as a strong presence in the SUV segment. However, the company announced that due to the 40% additional tax on cars imported from China, it will no longer bring sedan models to the U.S., where these vehicles are produced.
Volvo sees plug-in hybrid models playing a crucial role in its future lineup. In this context, the company plans to develop the XC90 hybrid SUV model and has promised to deliver the new model by 2024. This move aligns Volvo with other major automakers, such as Ford, Volkswagen, and Hyundai, which have also delayed their plans for a full transition to electric vehicles.
