Volvo Cars Revises 2030 All-Electric Strategy, Embraces Hybrid Models Amid Market Challenges

Swedish automaker Volvo Cars has adjusted its 2030 target, now planning to include hybrid models in its lineup. The shift comes due to slower demand for EVs, limited affordable models, and charging infrastructure issues. Volvo aims for 90-100% electrified sales by 2030, incorporating full EVs and hybrids for profit growth.

On Wednesday, Swedish automaker Volvo Cars revised its 2030 all-electric target, indicating a shift to include hybrid models in response to market dynamics. Major automakers face diminishing EV demand, attributed to restricted affordability and slow charging infrastructure development.

Following this announcement, Volvo's shares plunged by 7.5% at 1416 GMT. The company now aims for 90-100% of its cars sold by 2030 to be electrified, consisting of fully electric and plug-in hybrid models, while up to 10% will be mild hybrids.

This strategic pivot is influenced by the rising popularity of hybrid cars. CEO Jim Rowan affirmed Volvo's commitment to an electric future but emphasized the non-linear transition process, calling for robust government policies to support the shift.

(With inputs from agencies.)