Volvo Cars announced today that it is pulling back on its goal to offer only fully electric vehicles by 2030, adding room for up to 10% of sales to include mild hybrid models and including plug-in hybrids in the rest of its mix, as well as its interim carbon emissions reduction goals, citing headwinds facing the automotive markets’ electrification transition.

The company announced its electrification goal in 2021, pledging at the time to become a fully electric car company by 2030, selling only fully electric cars throughout its global portfolio, and phasing out any models with internal combustion engines (ICEs), including hybrids.

In its update today, however, the company noted a series of factors impacting its projected progress, including “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.”

The company’s new goal targets having 90% to 100% of its global sales volume consist of “electrified cars,” including fully electric and plug-in hybrids, with the remaining 10% consisting of mild hybrid models. Volvo also expects electrified products to account for 50% – 60% of sales by 2025, compared with its goal from 2021 to have 50% fully electric sales by 2025. In the second quarter of 2024, the company said that its share of fully electric cars stood at 26%, and that EVs and plug-ins accounted for 48%.

Volvo Cars stated that it anticipates having a complete lineup of fully electric cars “well before the end of this decade,” which will allow the company “to make the move to full electrification as and when the market conditions are suitable.”

The company also adjusted its interim CO2 reduction goals as a result of the new electrification pathway, with new targets including reducing CO2 emissions per car by 65% – 75% by 2030 on a 2018 basis, compared to its prior goal, announced last year, of a 75% reduction, and reducing CO2 emissions by 30% – 35% by 2025, compared to its prior 40% reduction goal. Volvo Cars retained its goal to achieve net zero greenhouse gas emissions by 2040.

Jim Rowan, Chief Executive of Volvo Cars, said:

“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.”