Volvo Delays Electrification Target

Volvo Cars is continuing to push forward with its electrification strategy, with five fully electric vehicles (EVs) already on the market and five more in development. Aiming for full electrification remains a central part of the company’s long-term goals, which also include achieving net zero greenhouse gas emissions by 2040.

However, in light of shifting market conditions and changing customer preferences, Volvo Cars has decided to adjust its electrification targets.

By 2030, instead of this being the target for a fully electric offering, Volvo now aims for 90 to 100 per cent of its global sales to consist of electrified vehicles, including both fully electric and plug-in hybrid models. The remaining 0-10 per cent will allow for the sale of mild hybrid models if necessary.

Looking ahead to 2025, Volvo Cars expects electrified models to make up 50 to 60 per cent of its sales. The company is also on track to have a complete lineup of fully electric vehicles well before the end of the decade, positioning it to fully embrace electrification as market conditions allow.

As of the second quarter of 2024, fully electric cars represented 26 per cent of Volvo’s total sales – the highest among premium car brands. The combined share of electrified vehicles, including EVs and plug-in hybrids, reached 48 per cent.

A Change Of Plan With The Same End Goal

Despite these adjustments, Volvo remains dedicated to its long-term vision of full electrification. The company’s product development and investment plans are still aligned with this goal, and the recent changes are not expected to significantly impact capital expenditures.

Volvo continues to enhance its plug-in hybrid and mild hybrid offerings, ensuring a diverse range of options as it transitions toward an all-electric future. Since committing to electrification, Volvo has introduced five fully electric models: the EX40, EC40, EX30, EM90, and EX90. Notably, the EX30 is currently the third best-selling EV in Europe, based on the most recent industry data.

However, Volvo Cars acknowledges challenges in the broader EV market, including slower-than-expected expansion of charging infrastructure, reduced government incentives in certain regions, and uncertainty from new tariffs on EVs. To support the transition to electrification, the company continues to advocate for stronger, more consistent government policies.

By adjusting its strategy, Volvo Cars aims to remain flexible, ensuring it meets evolving customer needs while driving value as a business.

“We are resolute in our belief that our future is electric. An electric car provides a superior driving experience and increases possibilities for using advanced technologies that improve the overall customer experience. However, it is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds of adoption. We are pragmatic and flexible, while retaining an industry-leading position on electrification and sustainability.”

Jim Rowan, chief executive of Volvo Cars.

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Updates to CO2 reduction plan

In line with its updated electrification goals, Volvo Cars is also revising its carbon dioxide (CO2) reduction targets. By 2030, the company now aims to reduce CO2 emissions per vehicle by 65 to 75 percent compared to a 2018 baseline, slightly adjusting its previous target of a 75 percent reduction.

For the interim milestone in 2025, Volvo is aiming for a 30 to 35 percent reduction in emissions per car, down from the earlier goal of 40 percent.

In the first half of the year, the company had already achieved a 25 percent reduction in CO2 emissions per vehicle compared to its 2018 benchmark, reflecting its ongoing efforts toward a more sustainable future.

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