Volvo has announced that they will no longer pursue their goal of becoming an all-electric company by 2030. This decision comes only 3 years after Volvo announced its all-electric ambitions. Volvo has claimed that changing market conditions are the reason behind this. Volvo joins other automotive manufacturers who have been reanalysing their EV plans after EV sales dwindled massively all across the globe this year. Read ahead to find their new plans.
Volvo's New Targets
The Swedish company has claimed that it will aim for 90% of its production to consist of fully electric and plug-in hybrid vehicles by 2030. The company might even launch some mild hybrid cars that will help internal combustion engines. Volvo's CEO emphasised that the company still believes that the future is electric. However, he believes that the electrification of cars will not be linear as different markets and customers move at different speeds.
Tariffs At Play
A significant part of Volvo is owned by the Chinese automaker Geely. This is a problem for them as China-made electric cars face high tariffs in both North America and Europe. For instance, Canada placed a 100% tariff on Chinese electric cars recently. The reason that countries have given is said to be the massive subsidies the Chinese government gives to its EV makers. That, in their perspective, gives them an unfair advantage over the EVs of other automakers.
Automakers On Back Foot Over EVs
Volvo is not the only automaker that has adjusted its plans for Electric cars. Recently, large automakers, including Ford, GM, Mercedes-Benz, Volkswagen, Jaguar Land Rover, and Aston Martin, have scaled back their EV plans. Ford Motor went so far as to announce that it will delay $12 billion of its planned $15 billion in EV-related investments. The pioneer of EVs, Tesla, has also been facing year-on-year declines in sales that have eventually led to a fall in its share price.
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