Volvo, the Swedish automaker known for its environmental commitments, has reversed its plan to sell only fully electric cars by 2030. This decision comes amidst growing signs of a global slowdown in the electric vehicle (EV) market. The company, owned by Chinese conglomerate Geely, had previously been at the forefront of the electric revolution. As early as 2017, Volvo declared its intention to produce only all-electric or petrol-electric hybrids by mid-decade. In 2021, it boldly announced plans to become an electric-only brand by 2030.
However, in a statement released on Wednesday, Volvo adjusted its targets. The automaker now expects at least 90 per cent of its production to be either all-electric or plug-in hybrid by 2030. The remaining vehicles will be “mild hybrids”, essentially petrol cars with energy-saving features. This significant shift in strategy was announced by Jim Rowan, Volvo’s Scottish CEO who joined the company in 2022 from the technology and consumer electronics industry.
Rowan stated, “We are resolute in our belief that our future is electric. However, it is clear that the transition to electrification will not be linear and customers and markets are moving at different speeds of adoption.” The decision reflects growing consumer resistance to higher-priced zero-emission vehicles, particularly in the face of increased inflation and interest rates. Additionally, the immaturity of public charging networks has contributed to hesitancy in EV adoption. Volvo’s announcement coincides with news from Volkswagen, Europe’s largest carmaker, which has indicated it may need to cut thousands of jobs due to lower-than-expected demand for electric vehicles.
Volkswagen’s finance director, Arno Antlitz, revealed that the company is short of sales for around 500,000 cars, equivalent to the output of two plants. These developments underscore the challenges facing the automotive industry as it navigates the complex transition to electric mobility. As consumer preferences and market conditions continue to evolve, carmakers are being forced to reassess their strategies and timelines for full electrification.
Post Disclaimer
The following content has been published by Stockmark.IT. All information utilised in the creation of this communication has been gathered from publicly available sources that we consider reliable. Nevertheless, we cannot guarantee the accuracy or completeness of this communication.
This communication is intended solely for informational purposes and should not be construed as an offer, recommendation, solicitation, inducement, or invitation by or on behalf of the Company or any affiliates to engage in any investment activities. The opinions and views expressed by the authors are their own and do not necessarily reflect those of the Company, its affiliates, or any other third party.
The services and products mentioned in this communication may not be suitable for all recipients, by continuing to read this website and its content you agree to the terms of this disclaimer.