Volvo abandons plan to sell only electric cars by 2030

Automaker Volvo has announced that it has dropped its goal of producing only fully electric cars by 2030, but now expects to sell some hybrid vehicles by then.

The carmaker blamed changing market conditions for its decision to abandon a target it announced just three years ago.

This comes as the sector faces declining demand for electric vehicles (EVs) in a number of key markets and uncertainty due to the imposition of trade tariffs on EVs produced in China.

Volvo, which traditionally boasts of its environmentally friendly image, joins other major automakers, General Motors and Ford, who have also scaled back their electric car ambitions.

Volvo expects that at least 90% of its production will consist of electric cars and plug-in hybrids by 2030.

The Swedish company may also sell a small number of so-called mild hybrids, which are more conventional vehicles with limited electrical support.

“We are convinced that our future is electric,” Volvo CEO Jim Rowan said in a statement.

“However, it is clear that the transition to electrification will not be linear and that customers and markets are developing at different speeds.”

The company also noted that the business environment for electric vehicles has changed, due to factors such as slow rollout of charging infrastructure and withdrawal of consumer incentives.

Volvo is majority owned by Chinese auto giant Geely. Because the company has factories in China, it also faces import duties on Chinese-made electric cars in Europe and North America.