Volvo backtracks on electrification and carbon reduction goals

Volvo Cars has overhauled its electrification and carbon reduction goals, adjusting its original plan to become a fully electric car manufacturer by 2030.

The revised strategy now allows up to 10% of sales to include mild hybrid vehicles, with plug-in hybrids making up the remainder of the mix, citing challenges in the broader automotive market's shift to electrification.

Initially set in 2021, Volvo's goal was to transition entirely to electric vehicles (EVs) by 2030, eliminating internal combustion engines (ICEs) from its lineup, including hybrid models.

However, in the latest update, the company cited several factors hampering its progress. These include slower-than-expected expansion of charging infrastructure, the reduction or removal of government incentives in certain markets, and uncertainties introduced by new tariffs on EVs.

Under the revised goals, Volvo now aims for 90% to 100% of its global sales to consist of "electrified cars," which includes fully electric vehicles and plug-in hybrids, with the remaining 10% being mild hybrids.