Like other automakers, Volvo’s walking back its plan to only sell electric cars by 2030.
On Wednesday, in Sweden at the debut of the 2025.5 XC90, the automaker revised its electrification ambitions. By 2030 Volvo now aims for 90-100% of its sales to be electrified. The automaker clarified that meant having a plug and not just a mild-hybrid system.
The remaining portion of up to 10% of sales allows the automaker wiggle room for “a limited number of mild hybrids to be sold, if needed,” according to Volvo.
By 2025 Volvo expects 50-60% of its sales to be electrified.
Volvo said it has five electric cars in development today, in addition to the electric and plug-in hybrid models on sale today.
The automaker is in the midst of launching the EX90 in the U.S., just revealed the 2025.5 XC90 plug-in hybrid, and teased the electric ES90 sedan.
Development of plug-in hybrid and mild hybrid vehicles will continue at Volvo, but the automaker didn’t provide numbers as to how many models are under development.
In July, a Volvo dealer who asked not to be identified told Automotive News Europe, “We will have to (sell plug-in hybrids), or we die.”
A recent Bloomberg report estimated that plug-in hybrids will peak at 10% of global new-car sales in 2030.
Volvo noted slow development of charging infrastructure as a key reason for the strategy shift. Withdrawl of government incentives in some markets was identified as another issue, and Volvo said there’s a need for “stronger and more stable government policies to support the transition to electrification.”
The automaker said it aims to achieve net zero greenhouse gas emissions by 2040.
