After saying for over three years It will sell only electric cars by 2030Volvo has scaled back its EV ambitions. Now the car manufacturer he says it will account for 90-100 percent electrified vehicles (including fully electric vehicles and plug-in hybrids) by the end of the decade, with mild hybrids accounting for the remaining 0-10 percent. Volvo attributed its revised ambitions to “changing market conditions and customer demands”.
Volvo says it’s still committed to long-term electrification. After setting a (now-defunct) 2030 target three years ago, the automaker introduced five all-electric models: the EX40, EC40, EX30, EM90 and EX90.
The company cites a slower-than-expected rollout of EV charging infrastructure as a factor in its decision. Despite the passage of President Biden’s bipartisan infrastructure bill in 2021, $7.5 billion was allocated to this bill. Support for the creation of 500,000 EV charging stationsa total of seven stations in four states has been built since March. Reasons for slow rollout include lack of experience in state transportation agencies responsible for implementation and various government requirements (submitting plans, receiving proposals, providing funds).
The Biden Administration said earlier this year that it still expects the U.S. to reach 500,000 charging stations by 2026.
Volvo also cited “additional uncertainties created by recent tariffs on electric vehicles in various markets.” This is likely due to the hit the carmaker took from manufacturing some models in China. The White House announced earlier this year New taxes on electric cars made in China and batteries are imported from China. (Volvo’s parent company, Volvo Car AB most of which is owned by China’s Geely Holding.) Forbes informed in May, the Chinese-made EX30, which is expected to start at around $37,000, will climb to over $50,000 after tariffs.
Along with the revised schedule, the automaker also revised its CO2 reduction expectations. It now says it aims to reduce emissions per vehicle by 65-75 percent (compared to a 2018 baseline) by 2030; the previous target was 75 percent difficult. In addition, it reversed the previous reduction of 40 percent per vehicle by 2025 (also compared to 2018); that target is now a 30-35 percent reduction.
“We firmly believe that our future is electric,” Volvo Cars CEO Jim Rowan said in a press release. “An electric vehicle provides a superior driving experience and increases the use of advanced technologies that improve the overall customer experience. However, it is clear that the transition to electrification will not be linear and that customers and markets are moving at different rates of adoption. We are pragmatic and flexible, maintaining an industry-leading position in electrification and sustainability.”
