Volvo Cars revised its ambitious plan to fully electrify its vehicle lineup by 2030, citing shifting market dynamics and customer preferences.
Initially, the company aimed for its entire fleet to be fully electric by the end of the decade. However, the new goal targets 90-100% of global sales to consist of electrified vehicles — a mix of fully electric and plug-in hybrid models — while allowing for a small share (0-10%) of mild hybrids models.
According to Volvo’s press statement, by 2025 it expects 50-60% of its sales to come from EVs, maintaining momentum towards its ultimate goal. The company emphasises that, well before 2030, it will offer a complete lineup of fully electric vehicles, positioning itself to switch entirely to electric once market conditions become favourable.
During the "90/90 Day" presentation Jim Rowan, President and CEO of Volvo Cars noted that this is due to the complex landscape of EV adoption. It has slowed due to uneven rollout of charging infrastructure, the removal of government incentives in some regions, and new tariffs affecting EV sales in key markets.
Despite the revised timeline, Volvo Cars remains an industry leader in premium EV space with EVs accounting for 26% of its global sales. The brand has already launched five fully electric models, including the EX30, EX40 (XC40 Recharge), EC40 (C40 Recharge), EM90, and EX90.
The EX30, set for launch in Malaysia on Sept 25, is said to be performing strongly, ranking as the third best-selling EV in Europe. Volvo’s plug-in hybrids are also gaining popularity, with the XC60 becoming Europe’s best-selling plug-in hybrid this year.
Additionally, Volvo now aims to reduce emissions per vehicle by 65-75% by 2030, compared to its earlier target of a 75% reduction from the 2018 baseline. Part of this effort saw the firm discontinuing production of its diesel powertrains.
During the first half of 2024, the company achieved a 25% reduction in CO2 emissions per vehicle compared to 2018, demonstrating its continued commitment to sustainability.
