Volvo Cars steps back from full electrification goal by 2030

Volvo Cars announced an adjustment in its full electrification goal for 2030, it is now aiming for 90-100% electrification by the end of this decade. This decision is based on market conditions and mild consumer demand.

The company is looking for 90 to 100% of its global sales volume to consist of electric cars with mixed sales of fully electric and plug-in hybrid vehicles. The remaining 0-10 percent will be accounted for mild hybrid cars.

In 2025, Volvo expects 50 to 60 percent electrification of its offerings. It also promised that by 2030, it will have a complete line-up of fully electric cars.

Volvo EX30 small electric SUV (image source – Volvo)

Its portfolio includes five electric vehicles in the market EX40, EC40, EX30, EM90, and EX90. The EX30 is making good sales in Europe.

Volvo explains that the shift in EV strategy is also related to the slow charging infrastructure rollout, reduced or no government incentives, and new Tariffs on Chinese imports.

As of the second quarter of 2024, Volvo has 26% of the electrified models. Its combined share of EVs and plug-in hybrids stands at 48%.

With this new roadmap, the auto company has updated its CO2 reduction plan. By 2030, it aims to reduce CO2 emission per car by 65-75% compared to a 2018 baseline.

This is an adjustment of the previous 75% reduction ambition. For next year,  Volvo has set 30-35% reduction versus a 2018 baseline, instead of 40%.

(source)