Volvo backtracks from plan to sell only electric vehicles by end of the decade

By Louis Goss

Last year, 15% of Volvo's sales were fully electric vehicles

Volvo Cars has modified its plans to transition into a fully electric car company by 2030, over concerns about tariffs, the withdrawal of government incentives, and a lack of vehicle charging infrastructure.

In a statement, the Swedish car manufacturer said it had decided to cut back on ambitions it previously set out in 2021 to transition to only manufacturing electric vehicles by the end of this decade.

In March 2021, Volvo (SE:VOLCAR.B) previously outlined plans to transition into a "fully electric" car manufacturer by 2030 with a view to phasing out production of all cars with internal combustion engines, including hybrids.

Now, Volvo has said it is aiming for 90% to 100% of its global revenue to be generated by selling all forms of electrified cars, including both fully electric cars and plug-in hybrid models, in what marks a cutting back of its earlier ambitions.

"We are resolute in our belief that our future is electric," Volvo Cars CEO Jim Rowan said in a statement. "However, it is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds of adoption."

Volvo Cars shares, listed in Stockholm, tumbled 6% and have dropped 12% this year.

Last year, 15% of the vehicles Volvo sold were fully electric, up from 11% in 2022, according to its annual report.

In its statement, Volvo blamed the cutback on "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."

Volvo is currently majority owned by Zhejiang Geely Holding Group , the Hangzhou headquartered car manufacturer. The Gothenburg headquartered company was acquired by Geely for $1.8 billion in 2010.

-Louis Goss

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

09-04-24 0938ET

Copyright (c) 2024 Dow Jones & Company, Inc.