The Chinese-owned Swedish car marque, just like many other legacy auto giants, is adjusting its all-electric plans.
Volvo has announced alterations to its plans of going fully electric by 2030. With this, it becomes the latest legacy auto giant to join the list of established car companies that have revised their ambitious plans of having a fully electric portfolio. The unexpected slowdown in EV demand in the last few months has been challenging for automakers. In fact, the three largest markets in the world, the U.S., China and Europe, are struggling due to lower-than-expected growth in the EV space. Let us take a look at the details of how Volvo plans to deal with this predicament.
You might also like: 100% Tariffs On China-Made EVs Delay Volvo EX30 For U.S.
Volvo Adjusts its Plans of Going Fully Electric
As per the latest press release from the Swedish car company, it now aims for 90-100% of its global sales volume by 2030 to consist of electrified cars. This includes a mix of fully electric and plug-in hybrid vehicles. The rest 0-10% will incorporate mild hybrid models. Previously, the Geely-owned firm announced that its entire lineup was supposed to be fully electric by 2030.
Volvo stated the “changing market conditions” and “customer demands” to be the reasons for this reassessment. Nevertheless, it remains committed to achieving net zero greenhouse gas emissions by 2040. For that, it currently has 5 fully electric models on the market along with another 5 in development. By next year (2025), it anticipates 50-60% electrified products in its global portfolio.
During the second quarter of 2024, Volvo Car’s share of fully electric cars was 26%. Interestingly, this is the highest among all its premium peers. Furthermore, its share of electrified models (including EVs and plug-in hybrids) stood at 48% in the same period. Presently, Volvo sells 5 fully electric models – the EX40, the EC40, the EX30, the EM90 and the EX90. Its EX30 is the third best-selling EV in Europe.
The press release mentions, “Volvo Cars remains committed to its long-term ambition of full electrification, and the company’s long-term investment plan and product strategy remains geared towards fully electric cars. The adjustment to its ambitions is not expected to have any material impact on the company’s capital expenditure plans. Volvo Cars continues to develop its plug-in and mild hybrid cars, providing it with a balanced portfolio that serves as a clear bridge to an all-electric future.”
You might also like: Volvo Could Import EX30 From Belgium To The U.S.
Learn Electric Cars Says
We know that the recent slump in EV demand is causing havoc on many legacy carmakers. We have already covered news about Ford delaying plans of launching an electric pickup truck, completely cancelling an electric SUV, VW planning to shut one of its manufacturing plants and one component factory in Germany and now Volvo readjusting its future goals.
To make things worse, the charging infrastructure rollout has been slower than expected, governments have withdrawn incentives in some markets and astronomical tariffs on certain EVs in some parts of the world have caused uncertainty regarding the electric mobility future. Hence, car brands and policymakers need to work in tandem to ensure a smooth transition into electrification. I shall keep a close eye on further developments in this regard.