Volvo Reduces 2030 EV Goal to 90%

Volvo, the Swedish automaker owned by China’s Geely, has modified its ambitious plan to transition to 100% battery electric vehicles (EVs) by 2030. The new target aims for 90-100% of global sales to be composed of plug-in EVs. This adjustment is due to fluctuating market conditions and consumer concerns regarding charging infrastructure. The remaining 10% of sales will consist of mild hybrid models, which convert petrol or diesel power into electricity using a generator.

In the second quarter, 48% of Volvo’s global sales were from plug-in EVs, with battery EVs alone making up 26%. The strong demand in Europe helped propel the EX30 model to become the second-best-selling battery electric vehicle (BEV) in the EU, while the XC60 led in the plug-in hybrid electric vehicle (PHEV) category. Although global EV sales growth has slowed, CEO Jim Rowan emphasized Volvo’s commitment to electrification, while acknowledging the uneven pace of adoption across various markets.

As demand for EVs in Europe has cooled, due in part to the withdrawal of subsidies by countries like Germany and France, Chinese EV manufacturers are increasing their market presence. In response, the European Commission has introduced import tariffs to protect local manufacturers.