Volvo is moving away from its plan to sell only all-electric cars from 2030. In the future, 90 to 100 per cent of global sales are to consist of all-electric and plug-in hybrid models. The remaining 0 to 10 per cent will be mild hybrids. This was officially announced recently by the car manufacturer, which is part of Geely.
In the second quarter of 2024, the share of fully electric vehicles (BEVs) was 26 per cent Volvo Cars. This is the highest figure of all premium manufacturers. Together with plug-in hybrids (PHEVs), the Swedish brand reached 48 per cent.
In the coming year, Volvo wants to increase the combined share of BEVs and PHEVs to 50 and 60 per cent. The manufacturer wants to offer a complete BEV range long before the end of this decade. Volvo currently offers four BEV vehicles in the UK: EX30, EX40, EC40 and EX90. Together with the EM90 electric van offered in China, this makes five models. According to Volvo, five more electric cars are in the pipeline. One of these is apparently the ES90 electric saloon that has now been teased.
So far there is only this teaser picture of the Volvo ES90
However, Volvo's long-term goal remains to become a pure electric car manufacturer. The change in plans will not have any significant impact on the company's investment plans.
Volvo cited "changed market conditions and customer requirements" as the reason for the change in targets. In addition, the expansion of the charging infrastructure has been slower than expected, government incentives have been cancelled in some markets and additional uncertainties have been created by the tariffs on electric vehicles from China. Stronger and more stable government support for the transformation to electric mobility is needed, writes Volvo.
"We firmly believe that our future is electric," said Volvo CEO Jim Rowan. "However, it is clear that the transition to electrification will not be linear and that customers and markets will have different speeds of adoption. We are being pragmatic and flexible while maintaining our industry-leading position in terms of electrification and sustainability."
As a result of the change in electrification ambitions, the plan for achieving CO2 neutrality will also be adjusted. Volvo still aims to reach net zero greenhouse gas emissions by 2040. By 2030, emissions per car are to be reduced by 65 to 75 per cent compared to 2018 - previously 75 per cent was planned. The target for 2025 is now minus 30 to 35 per cent compared to 2018, instead of 40 per cent. In the first half of the year, CO2 emissions per car were 25 per cent lower than in 2018.
Volvo sees plug-in hybrids as a bridging solution. The latest data showed that around half of the miles covered by Volvo's latest plug-in hybrids are driven purely electrically.
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The bottom line
We're beginning to think of the electric car market as a game of dominoes: one manufacturer after another is backing away from its proud electrification ambitions. Well, we can't change that. Hopefully, the situation will change again at some point. And until then, other sectors will have to drive forward their greenhouse gas neutrality in order to save the climate.
Our cover picture shows Volvo's current electric bestseller, the EX30.
Source: Volvo Global