Swedish based Volvo Cars has abandoned its 2030 all electric target and has replaced it with a new goal of using plug-in hybrids and even mild hybrids to reach a diluted target of having only “electrified” cars on offer by the end of the decade.
Volvo blames the backflip from one of the world’s most progressive EV targets to “changing market conditions” and customer demands.
“Going forward, Volvo Cars aims for 90 to 100 per cent of its global sales volume by 2030 to consist of electrified cars, meaning a mix of both fully electric and plug-in hybrid models – in essence, all cars with a cord,” it said in a statement overnight.
“The remaining 0-10 per cent will allow for a limited number of mild hybrid models to be sold, if needed. This replaces the company’s previous ambition for its line-up to be fully electric by 2030.”
Volvo has already released five full battery electric car models – the EX40, the EC40, the EX30, the EM90 and its newly launched “flagship”, the EX90.
EVs currently account for around 26 per cent of its sales in the latest quarter – above most of its peers. Add in plug in hybrids, and that total comes to 48 per cent.
Just months after producing the last of its diesel powered cars, it now says it will continue to develop plug-in and mild hybrid cars “as a clear bridge” Â to an all-electric future. It is particularly focused on an updated version of its XC90 hybrid car, despite claiming huge interest in the fully election EX90.
Volvo blamed a raft of issues for the change in strategy, including the slower than expected rollout of charging infrastructure, withdrawal of government incentives in some markets and the “additional uncertainties” created by recent tariffs on EVs in various markets.
“We are resolute in our belief that our future is electric,” said Jim Rowan, chief executive of Volvo Cars. “An electric car provides a superior driving experience and increases possibilities for using advanced technologies that improve the overall customer experience.
“However, it is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds of adoption. We are pragmatic and flexible, while retaining an industry-leading position on electrification and sustainability.”
As a result, the company has diluted its climate targets, dumping its previous goal of a 75 per cent cut in CO2 emissions below 2018 levels by 2030, and replacing it with a weaker 65-75 per cent target reduction. Its emissions are currently 25 per cent below its 2018 benchmark.
Giles Parkinson is founder and editor of The Driven, and also edits and founded the Renew Economy and One Step Off The Grid web sites. He has been a journalist for nearly 40 years, is a former business and deputy editor of the Australian Financial Review, and owns a Tesla Model 3.