Volvo Scales Back Electric Car Commitment Amid Market Challenges

Sweden-based Volvo Cars has revised its goal to stop selling internal combustion engine vehicles by 2030, citing market and regulatory hurdles. The company now expects 90% of its lineup to be electric by the end of the decade, with the remainder being hybrids. This adjustment is attributed to slow infrastructure development and shifting customer demands.

Sweden's Volvo Cars has revised its commitment to cease selling internal combustion engine cars by 2030, citing market and regulatory challenges.

The company, owned by China's Geely Holding, now projects that by decade's end, 90% of its lineup will be electric, including battery-only and plug-in hybrids. Up to 10% could consist of mild hybrids.

CEO Jim Rowan cited changing market conditions and customer demands, emphasizing the non-linear transition to electrification. Regulatory pressures and infrastructure delays have affected the pace of electric vehicle adoption, with Germany and the US implementing new tariffs on Chinese EVs.

(With inputs from agencies.)