Volvo Cars has abandoned its target of selling electric vehicles exclusively by 2030, and will instead have up to 10% of its stock consist of “mild hybrids” that primarily run on gasoline. Volvo in 2021 pledged to overhaul its entire line in favour of vehicles that are solely run on electricity. Volvo Cars now aims for between 90% and 100% of all its models to be fully electric or plug-in hybrid models by 2030 — allowing up to 10% for “mild hybrids,” which are primarily run by combustion engine but have electric power to “supplement” the gasoline power. Further, Volvo now expects full EVs and hybrids to account for between 50% and 60% of sales volumes by 2025, with the rest combustion engine models. The 2025 target previously strived to have 50% fully electric cars and the other 50% hybrids.The corporation, initially Swedish but now majority-owned by Chinese company Greely, in announcing its decision cited slowing demand for fully electric vehicles — illustrated by Volvo’s recent 7.5% drop in shares. Hybrid models are to be expected in its lineup in 2030, the company said in a statement Wednesday to Reuters. "It's a pragmatic approach...to help our customers go on the journey to full electrification. For many customers in many markets it will be a stepwise journey," Erik Severinsson, Head of Strategy and Chief Product Officer told the publication.A litany of factors explain why public interest in fully electric vehicles have dwindled. Consumers complain about the lack of affordable models, the limited number of infrastructure like charging stations and the tariffs on electric vehicles made in China. People have also submitted complaints about the short driving range EVs offer, causing demand for hybrid vehicles to grow. A separate statement from Volvo, which said plug-in hybrids are “critical” to its future profit margins,” also announced the updated hybrid XC90 would be available by the end of 2024. "We are resolute in our belief that our future is electric," CEO Jim Rowan said, according to Reuters. "However, it is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds."Volvo, which has considered itself an EV trailblazer, said there should be “stronger and more stable" government policies to support the transition to electric vehicles.
