Volvo Cars announced a significant adjustment to its electrification strategy, stepping back from its ambitious 2030 goal of becoming fully electric. Initially committed to a 100% electric vehicle lineup by 2030, the company has now revised this target to 90-100%, acknowledging the challenges posed by insufficient charging infrastructure, the withdrawal of government incentives in some markets, and the impact of recent tariffs on electric vehicles.
Despite this change, Volvo remains committed to electrification as a core aspect of its product strategy. However, the company has recognized that achieving full electrification by 2030 is no longer feasible due to evolving market conditions and shifting consumer demands.
The revised target allows Volvo to include a small percentage (0-10%) of mild hybrid models in its sales mix if necessary. Currently, Volvo offers five fully electric models, with five more under development. The company anticipates that electrified vehicles will account for 50-60% of its product lineup by 2025, with a complete range of fully electric vehicles available well before the decade concludes.
Volvo noted that its share of fully electric vehicles reached 26% in the second quarter of 2024, the highest among its premium competitors. Additionally, its electrified vehicle share, including both EVs and plug-in hybrids, stood at 48%.
The company emphasized that it will transition to full electrification when market conditions are more favorable, continuing to adapt its strategy to meet the evolving needs of the global automotive market.
