João da Silva
Business reporter
Getty Images
The car maker blamed changing market conditions for its decision to give up a target it had announced only three years ago
Car company Volvo has announced it has abandoned its target to produce only fully electric cars by 2030, saying it now expects it will also be selling some hybrid vehicles by that date.
The car maker blamed changing market conditions for its decision to give up a target it had announced only three years ago.
It comes as the industry faces a slowdown in demand in some major markets for electric vehicles (EVs) and uncertainty due to the imposition of trade tariffs on EVs made in China.
Volvo, which has traditionally flaunted its environmental credentials, joins other major car makers General Motors and Ford, which have also rowed back on their EV ambitions.
Volvo now expects at least 90% of its output to be made up of both electric cars and plug-in hybrids by 2030.
The Swedish company may also sell a small number of so-called mild hybrids, which are more conventional vehicles with limited electrical assistance.
"We are resolute in our belief that our future is electric," said Jim Rowan, chief executive of Volvo, in a statement.
"However, it is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds."
The company also said the business climate for EVs had changed, due to factors such as a slow rollout of charging infrastructure and the withdrawal of consumer incentives.
Volvo is majority-owned by Chinese car giant Geely and because it uses factories in China, it will also be affected by tariffs on imports of Chinese-made EVs in Europe and North America.
The car maker blamed changing market conditions for its decision to give up a target it had announced only three years ago
Car company Volvo has announced it has abandoned its target to produce only fully electric cars by 2030, saying it now expects it will also be selling some hybrid vehicles by that date.
The car maker blamed changing market conditions for its decision to give up a target it had announced only three years ago.
It comes as the industry faces a slowdown in demand in some major markets for electric vehicles (EVs) and uncertainty due to the imposition of trade tariffs on EVs made in China.
Volvo, which has traditionally flaunted its environmental credentials, joins other major car makers General Motors and Ford, which have also rowed back on their EV ambitions.
Volvo now expects at least 90% of its output to be made up of both electric cars and plug-in hybrids by 2030.
The Swedish company may also sell a small number of so-called mild hybrids, which are more conventional vehicles with limited electrical assistance.
"We are resolute in our belief that our future is electric," said Jim Rowan, chief executive of Volvo, in a statement.
"However, it is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds."
The company also said the business climate for EVs had changed, due to factors such as a slow rollout of charging infrastructure and the withdrawal of consumer incentives.
Volvo is majority-owned by Chinese car giant Geely and because it uses factories in China, it will also be affected by tariffs on imports of Chinese-made EVs in Europe and North America.
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