Volvo bins all-electric bid

Volvo has scrapped its target of going all electric by 2030, saying it expects to still be offering some hybrid models in its line-up by then,

In the US, General Motors, Ford and other marques have delayed or cancelled new electric models to avoid spending heavily on vehicles that consumers are not buying as quickly as expected.

Major carmakers have seen slowing demand for EVs partly due to a lack of affordable models and the slow roll-out of charging points, while also bracing for the effects of European tariffs on electric cars made in China.

By 2030, Volvo aims for 90-100 per cent of cars sold to be fully electric or plug-in hybrid (PHEV) models with the rest being so-called mild hybrids.

It adds PHEVs will be a critical part of its future profit growth. Volvo’s fully electric cars include the EX90 and EX30, pictured.

Growing demand for hybrids has prompted a strategic shift across a sector that had initially aimed to phase out hybrids in favour of BEVs.

Toyota continues to bet strongly on hybrids with an increased number of models, while Renault will continue to launch hybrid models.

Volvo Cars, which is majority-owned by China’s Geely, says it’s responding to changing market conditions and customer demands.

“It’s a pragmatic approach to help our customers go on the journey to full electrification,” says Erik Severinsson, Volvo’s head of strategy and chief product officer. “For many customers in many markets it will be a stepwise journey.”