Volvo Cars changes electrification strategy

Volvo Cars changed its electrification strategy due to the shifting market conditions and customer demands.

According to the Swedish automotive brand, it now aims for some 90 percent of its offerings to be electrified — which means that it will be comprised of both fully electric and hybrid models — by 2030. Previously, its ambitious goal was to have a fully electric lineup by the said year.

The remaining 10 percent, Volvo Cars noted, will allow for a limited number of mild hybrid models to be sold if needed.

“We are resolute in our belief that our future is electric,” Volvo Cars Chief Executive Jim Rowan said.

“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,” he added.

By 2025, Volvo Cars expects its roster to be made up of 50-60 percent all-electric vehicles. Before the decade ends, the Gothenburg-headquartered carmaker will have a complete line-up of fully electric cars available.

Then, Volvo Cars will become poised to make the switch to become an electric-only car brand, as and when the market conditions prove to be suitable.

“Volvo Cars remains committed to its long-term ambition of full electrification, and the company’s long-term investment plan and product strategy remains geared towards fully electric cars. The adjustment to its ambitions is not expected to have any material impact on the company's capital expenditure plans,” the automotive firm wrote in a press release.

“Volvo Cars continues to develop its plug-in and mild hybrid cars, providing it with a balanced portfolio that serves as a clear bridge to an all-electric future,” it added.

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