Volvo has revised its target of producing only fully electric vehicles by 2030, announcing that it now expects to continue selling some hybrid models by that date. The carmaker cited evolving market conditions as the main reason for stepping back from the ambitious goal it set just three years ago.

This adjustment comes amid a slowdown in electric vehicle (EV) demand in key markets and rising concerns about trade tariffs on EVs produced in China. The global auto industry, including major players like General Motors and Ford, is grappling with uncertainties that have led several manufacturers to reassess their electrification strategies.

Volvo, known for its environmentally conscious branding, now predicts that at least 90% of its production by 2030 will consist of fully electric cars and plug-in hybrids. However, the company may also continue to produce a small number of mild hybrids, which feature limited electric assistance alongside traditional engines.

Volvo, known for its environmentally conscious branding, now predicts that at least 90% of its production by 2030 will consist of fully electric cars and plug-in hybrids. However, the company may also continue to produce a small number of mild hybrids, which feature limited electric assistance alongside traditional engines.

One significant factor influencing Volvo’s decision is the slow development of charging infrastructure and the reduction of government incentives for EV purchases. Independent analyst Anna McDonald noted that these challenges, along with consumer concerns about charging availability and the higher costs of EVs, have dampened demand.

Additionally, the introduction of tariffs on Chinese-made electric cars by Western countries is affecting companies like Volvo, which relies on factories in China. This follows recent moves by the US, the EU, and Canada to impose tariffs, citing concerns over unfair subsidies in China’s EV industry a claim that China has denied, calling the tariffs "discriminatory."