Swedish carmaker Volvo said Thursday it no longer aims to sell only electric vehicles by the end of the decade, citing changing market trends.
Volvo said deteriorating market conditions made that target untenable. The company added that it was committed to switching to electric vehicles and expected to sell hybrid vehicles by 2030.
“We are convinced that our future is electric,” said Jim Rowan, Volvo’s CEO. “However, it is clear that the transition to electrification will not be linear and that customers and markets are evolving at different speeds.”
Despite the announcement, Volvo said it expects 90% of its production to be electric and hybrid vehicles by 2030.
According to the automaker, customer demand has declined significantly as government subsidies have dried up, and the slow rollout of charging infrastructure has further discouraged customers from abandoning traditional engines.
Additionally, because Volvo is owned by Chinese automaker Geely, it will likely be hit by a series of new tariffs on Chinese-made electric vehicles. That includes a 100% tariff on Chinese-made products imposed by Canada last week.
Volvo isn’t the only automaker to scale back its electric vehicle plans. Due to falling demand, Ford and General Motors have announced drastic cuts in their electric vehicle production.
washingtontimes
