Volvo’s new electrification goals – 90-100% PHEV, EV sales by 2030; ICE mild hybrids to continue if needed

Now that Volvo has backtracked on its pledge to sell only electric cars by 2030 – as declared in 2021 – what’s the new goal to replace the old one?

The Geely-owned Swedish brand said in a statement that it has decided to adjust its electrification ambitions “due to changing market conditions and customer demands”. The new aim is for 90 to 100% of global sales volume by 2030 to consist of full EVs and plug-in hybrid models – basically, cars that can be charged.

“The remaining 0-10% will allow for a limited number of mild hybrid models to be sold, if needed. This replaces the company’s previous ambition for its line-up to be fully electric by 2030,” Volvo said.

Make no mistake though, the EV momentum might have slowed down as supply is too much for current demand, but the path remains, and Volvo is well placed to benefit from the shift away from ICE. It has five full EVs on the market now and another five in development, and by 2025, Volvo expects the percentage of electrified products to come in between 50 and 60%.

Well before the end of this decade, Gothenburg will have a complete line-up of fully electric cars available, and “that will allow Volvo to make the move to full electrification as and when the market conditions are suitable,” the company says. Volvo’s long-term aim remains to become a fully electric car company, and it also aims to reach net zero greenhouse gas emissions by 2040.

“We are resolute in our belief that our future is electric. An electric car provides a superior driving experience and increases possibilities for using advanced technologies that improve the overall customer experience,” said Jim Rowan, CEO of Volvo Cars.

“However, it is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds of adoption. We are pragmatic and flexible, while retaining an industry-leading position on electrification and sustainability,” he added.

Volvo attributes the slowdown in EV growth to a slower than expected rollout of charging infrastructure, withdrawal of government incentives in some markets and additional uncertainties created by recent tariffs on EVs in various markets. The company continues to see the need for stronger and more stable government policies to support the transition to electrification.

“We are not dogmatic about our 2030 ambitions. Most important is that we provide products that our customers want. We will be ready to go fully electric this decade, but if the market infrastructure and customer acceptance is not quite there, we can allow that to take a few more years,” Rowan said at the 90/90 Day event, where the new XC90 was unveiled.

By the way, the 2025 XC90 continues with mild and plug-in hybrids even as the first batch of the all-electric EX90 is on its way to customers – both are three-row flagship SUVs, an example of Volvo’s approach to “provide customers with the options that best suit them” while giving Volvo “a balanced portfolio as we continue our transition towards full electrification,” as put by Rowan.

Closer to home, the Volvo EX30 EV will be launched later this month – here’s what we know so far.

GALLERY: Volvo EX90

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