Volvo scraps electric car target

Volvo Cars previously planned to sell only electric cars by 2030. Now the company has decided to scrap that goal.

In 2021, Volvo Cars announced its goal to replace all combustion engine cars, including hybrids, with electric cars The plan was part of the company’s strategy to become a fully electric car manufacturer by 2030.

However, the market for electric cars has become more challenging, with rising electricity prices and increased competition between companies, as well as higher costs for consumers, including interest rates that have made private leasing of electric cars more expensive. As a result, several car companies have changed their targets for electric cars, but Volvo Cars has remained committed to selling only electric cars from 2030.

Now the company has announced a change in strategy: instead of phasing out internal combustion engine cars completely, Volvo Cars now plans to have 90 to 100 percent of its global sales by 2030 consist of electrified cars, including hybrids. The remaining zero to ten percent will be so-called mild hybrids, i.e. gasoline cars supported by small electric motors to reduce fuel consumption.

– We firmly believe that our future is electric, said Volvo Cars CEO Jim Rowan in a press release. An electric car offers a superior driving experience and increases the opportunities to use advanced technologies that improve the overall customer experience, but it is clear that the transition to electrification will not be linear, and customers and markets move at different speeds.

The company has also adjusted its carbon emissions target, now aiming to reduce emissions per vehicle sold by 65-75% by 2030 compared to 2018 levels.