Volvo Cars adjusts fully-electric production timetable

Due to changing market conditions and customer demands, Volvo Cars has revised its production timetable, replacing its previous ambition for its line-up to be fully electric by 2030. 

According to Volvo Cars, there has been a slower-than-expected rollout of charging infrastructure, withdrawal of government incentives in some markets and additional uncertainties created by recent tariffs on EVs in various markets. 

Volvo Cars wants more robust and stable government policies to support the transition to electrification.

It aims for 90 to 100% of its global sales volume by 2030 to consist of fully electric and plug-in hybrid models. The remaining 0-10% will allow a limited number of mild hybrid models to be sold if needed. 

“We are resolute in our belief that our future is electric,” Volvo Cars chief executive Jim Rowan says.

“An electric car provides a superior driving experience and increases possibilities for using advanced technologies that improve the overall customer experience. However, the transition to electrification will not be linear, and customers and markets are moving at different adoption speeds.”

With five fully electric cars (BEVs) already on the market and another five models in development, full electrification remains a pillar of Volvo Cars’ product strategy. Its long-term aim remains to become a fully electric brand, and it also aims to reach net zero greenhouse gas emissions by 2040.

By 2025, it expects the percentage of electrified products to be between 50 and 60%. 

Before the end of this decade, Volvo Cars will have a complete line-up of fully electric cars available. That will allow it to move to full electrification as and when the market conditions are suitable.

Volvo Cars’ share of fully electric cars stood at 26% during the second quarter of 2024, the highest share among all its premium peers. Its electrified share – BEVs and plug-in hybrids – accounted for 48%.

Adjusting to its ambitions is not expected to impact the company’s capital expenditure plans.

Volvo Cars continues to develop its plug-in and mild hybrid cars, providing a balanced portfolio that serves as a transparent bridge to an all-electric future.

It has launched five fully electric models: the EX40, the EC40, the EX30, the EM90 and the EX90. 

The EX30 is currently ranked as the third best-selling EV in Europe, according to the latest available industry data.