Volvo Cars has insisted the future of the automotive industry “is electric,” despite ditching plans to sell only EVs by 2030.
The Swedish carmaker said on Wednesday it would now look for 90 to 100 per cent of its total sales to be either fully electric or plug-in hybrid by the end of the decade. Some 10 per cent will be what are described as mild hybrids, which use electric power to supplement a traditional combustion engine.
Volvo had been the first mainstay automaker to commit to switching its entire fleet to EV models, ahead of a looming 2035 ban on petrol car sales in Europe. It currently produces three fully electric makes; the EX90, the EX30 and the EX40.
Volvo blamed its changing plans on a “slower than expected” rollout of charging infrastructure and uncertainty created by the introduction of new tariffs on EVs.
“We are resolute in our belief that our future is electric,” Jim Rowan, chief executive, said. “An electric car provides a superior driving experience and increases possibilities for using advanced technologies that improve the overall customer experience.”
However, he added: “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.”
It comes amid concern in the sector over a slowdown in private demand for EVs, with consumers concerned over the high cost of making the switch from petrol-guzzling models. Both Mercedes-Benz, Ford and Volkswagen have also rowed back on initial plans to transition fleets to EVs.
Commenting on Volvo Cars decision, Joe Dharampal-Hornby, Head of Public Affairs at UKSIF, said: “Today’s announcement underlines the need to support consumers to transition from heavily polluting vehicles to EVs.
“The vast majority of large UK transport firms believe that the expansion and standardisation of EV infrastructure, including charging points, will be central to this. To achieve the UK’s target of 300,000 EV charging points by 2030, installation rates must increase by 60 per cent on the current pace, and should be located equitably across the country.”