Volvo revises 2030 target, shifts focus to hybrids amid slowing EV demand

Volvo Cars has revised its 2030 target of going fully electric, now expecting to offer some hybrid models by that time. The automaker cited slowing demand for electric vehicles (EVs) due to a lack of affordable models, slow rollout of charging infrastructure, and upcoming European tariffs on electric cars made in China. Shares in Volvo dropped 7.5% following the announcement.

Volvo now aims for 90% to 100% of its cars to be fully electric or plug-in hybrids by 2030, with up to 10% being mild hybrids, which use electric power to supplement internal combustion engines. The company also plans to revamp its plug-in hybrid XC90, with deliveries beginning by the end of the year. Plug-in hybrids are seen as crucial for Volvo’s profit growth.

This strategic shift reflects a broader industry trend, as automakers like Toyota and Renault continue to invest in hybrids, responding to customer concerns about EV driving ranges and affordability. Volvo expects electrified cars, including both EVs and hybrids, to account for 50% to 60% of its sales by 2025, compared to its previous goal of at least 50% fully electric sales.