To adjust to tougher EV market conditions, Volvo is now clearing its previous plan to only make electric vehicles by 2030.
Instead, BBC reported that the Swedish car manufacturer now expects to sell electric cars along with plug-in hybrids by the end of the decade.
Besides a slowdown in EV demand in main markets, the influence of new trade tariffs on Chinese-made EVs is also a problem. At one time, Volvo focused entirely on electric vehicles, standing true to its commitment to environmental sustainability and innovation. However, the EV market condition has made automakers reconsider such a strategy.
Volvo, GM, and Ford's Decision Due to Tough EV Market
Based on a report by Fox Business, this means Volvo joins both Ford and General Motors (GM) in retracting their electric vehicle plans. To be specific, Ford recently dropped plans for a large electric SUV and postponed the launch of its next electric pickup truck, while GM has reduced its production goals for electric vehicles over the past year.
Volvo CEO, Jim Rowan acknowledged their new approach to Bloomberg, "It is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds."
Now, the automaker will not necessarily scrap the whole EV plan. The new program stipulates that it will only manufacture at least 90% of its production of electric or plug-in hybrid models. These will feature a combination of traditional and electrical propulsion to meet the needs of a wider variety of consumers and diverse markets.
This is after VCPost recently learned that 30% of EV users are contemplating going back to traditional cars.
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