Volvo revises 2030 EV target, plans to keep hybrids in range

Swedish automaker Volvo Cars has announced that it will continue to offer hybrid models in its range after its ambitious plan to go fully electric by 2030. The decision reflects evolving market demand and the challenges surrounding it. electric vehicle (EV) adoption, a lack of affordable models and a slow expansion of charging infrastructure. Volvo now expects 90% to 100% of its sales to come from electric or plug-in hybrids by 2030, with 10% being mild hybrids that use electric power to supplement combustion engines.

Despite this adjustment, Volvo maintains that plug-in hybrids will remain critical to increasing profitability. The company plans to update Hybrid XC90 and plans to deliver the first updated SUVs towards the end of the year.

Volvo majority shares owned by Chinese Geelyhas previously been a strong advocate of full electrification, producing flagship electric SUVs such as the EX90 and EX30. However, with consumer demand for hybrids increasing, Volvo joins other automakers such as Toyota and Renault in acknowledging that hybrids remain unattractive to buyers due to concerns about EV range and affordability.

Volvo CEO Jim Rowan reiterated the company’s commitment to an electric future, saying, “We firmly believe that our future is electric,” but acknowledged that the transition will vary by market. The company expects electric vehicles, including hybrids and full EVs, to represent 50% to 60% of sales by 2025.

In response to changing market conditions, Volvo is calling for stronger government support to accelerate the adoption of electric vehicles. Meanwhile, the company continues to develop new electric models, including the upcoming ES90 sedan, which was previewed at an event showcasing the EX90. This shift toward hybrids highlights the complexity of the global push for greener automotive solutions, as Volvo and other manufacturers balance innovation with practicality.