Volvo Cars abandons 2030 EV-only target

Its previous target, from 2021, was for all its cars to be fully electric by 2030.

Swedish automaker Volvo Cars said on Wednesday it had abandoned its ambition to sell only fully electric cars by 2030, and would instead allow plug-in vehicles as well as some hybrid engine cars as part of its lineup at that time.

Major automakers have seen slowing demand for EVs partly due to a lack of affordable models and the slow rollout of charging points, and Volvo Cars is also bracing for the effects of European tariffs on electric cars made in China.

Volvo Cars said in a statement that by 2030 it now aims for between 90% and 100% of cars sold to be fully electric or plug-in hybrid models, while up to 10% would be so-called mild hybrid models if needed.

Its previous target, from 2021, was for all its cars to be fully electric by 2030.

Volvo Cars, which is majority-owned by China's Geely Holding, said it had lowered its ambition due to changing market conditions and customer demands.

"We are resolute in our belief that our future is electric," CEO Jim Rowan said. "However, it is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds of adoption".