Volvo Scales Back 2030 EV Target to 90%

Volvo EV

Swedish automaker Volvo, owned by China’s Geely, has revised its ambitious target of transitioning to 100% battery electric vehicles (EVs) by 2030. The company now aims for 90-100% of global sales to consist of plug-in EVs, citing volatile market conditions and consumer concerns about charging infrastructure as key reasons for the adjustment. The remaining 10% of sales will account for mild hybrid models, which use a generator to convert petrol or diesel power into electricity.

In the second quarter, plug-in EVs made up 48% of Volvo's global sales, with battery EVs alone accounting for 26%. Strong sales in Europe led to the company’s EX30 model becoming the second-best-selling BEV in the EU, while the XC60 topped the PHEV category. Despite slowing growth in EV sales globally, CEO Jim Rowan reaffirmed Volvo's commitment to electrification, while acknowledging the uneven pace of adoption across different markets.

European demand for EVs has cooled, as governments like Germany and France remove subsidies, and Chinese EV manufacturers increase their presence in the market, prompting the European Commission to introduce import duties to protect local manufacturers.