The company now plans to offer a combination of mild-hybrids, plug-in hybrids, and electric vehicles.
Volvo is the latest automaker to backtrack on its all-electric plans. While the company initially aimed to transition to electric-only by 2030 and reiterated this as recently as August 28, they have now revised their strategy.
Ahead of the facelifted XC90’s reveal, Volvo announced an adjustment to its electrification goals. Under the new approach, the company targets 90-100% of its vehicles to be electrified by 2030, meaning a combination of plug-in hybrids, electric vehicles, and possibly mild-hybrid models will be offered. Volvo attributed the shift to “market conditions” but emphasized its commitment to an all-electric future. They also reported that in the second quarter, 26% of their sales came from EVs, while 48% were from either electric or plug-in hybrid vehicles.
To maintain a balanced portfolio, Volvo will continue developing plug-in hybrids and mild-hybrid vehicles as a bridge to a fully electric lineup. Although this wasn’t the original plan, the company cited slower-than-expected growth in charging infrastructure, reduced government incentives in some regions, and uncertainties caused by recent EV tariffs. The latter suggests their production strategy in China, which delayed the U.S. launch of the EX30, may have contributed to the decision.
Volvo CEO Jim Rowan reaffirmed the company’s commitment to an electric future, noting that it offers a superior driving experience and enhances the use of advanced technologies that improve customer satisfaction. However, he acknowledged that the transition to electrification won’t be straightforward, as different markets and consumers are adopting at varying speeds.
