Electric Vehicle | Volvo Adjusts Electrification Target: Will Not be Fully Electrified by 2030

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Electric Vehicle | Volvo Adjusts Electrification Target: Will Not be Fully Electrified by 2030

Date：2024-09-05

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Keyword tags： Electric Vehicle Europe

Volvo Cars announced on September 4th that due to changes in "market conditions and customer demand", the company has decided to adjust its electrification targets. By 2030, 90% to 100% of its global sales are projected to be Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs), with the remaining 0-10% allowing for the sale of a limited number of mild hybrid models, such as HEVs.

Previously, the company had planned to go fully electric by 2030.

Since the company's commitment to fully entering the electric vehicle sector, it has launched five pure electric (BEV) models: the EX40, EC40, EX30, EM90, and EX90. The latest industry data indicates that the EX30 is currently ranked as the third best-selling electric vehicle in Europe. However, due to insufficient charging infrastructure, the withdrawal of government subsidies in some markets, and the recent imposition of tariffs on electric vehicles in regions like Europe and the United States, which has brought more uncertainty to the electric vehicle industry, the company has adjusted its previous electrification goals after considering various factors.

But at the same time, the company also stated that Volvo Cars' long-term goal remains to become a fullly electric vehicle company, and it still plans to achieve net-zero greenhouse gas emissions by 2040. Currently, in addition to the five pure electric models already on the market, Volvo Cars has five more models under development, making 100% electrification a key pillar of its product strategy.

According to Volvo's statistics, in the second quarter of 2024, pure electric vehicles (BEV) accounted for 26% of Volvo Cars' total sales, the highest share of pure electric vehicles among all legacy car brands. If Plug-in Hybrid Electric Vehicles (PHEVs) are included, its electrification rate has reached 48%.

The company also stated that by 2025, it expects the proportion of electric vehicles to reach 50% to 60%. By 2030, Volvo Cars will have a complete range of pure electric vehicles, enabling Volvo Cars to shift to full electrification at market maturity.

Volvo has electric vehicle factories in China, Sweden, and Belgium. To counter the European Union's increased tariffs on electric vehicles from China, Volvo is building a new plant in Slovakia, scheduled to start production in 2026. The company also announced that it will start producing the EX30 electric model at its Ghent plant in Belgium next year.

Volvo will deliver the first batch of its flagship three-row pure electric premium SUV model EX90 in the US and European markets this month, with a subsequent global rollout planned for the fourth quarter of this year and the first quarter of 2025. This EX90 is manufactured at Volvo's Charleston plant located in South Carolina, for the global market, with an annual production capacity of up to 150,000 vehicles. It is also the first electric vehicle model based on the SPA2 (Scalable Product Architecture 2) platform independently developed by Volvo. Volvo is pinning its hopes on this model to reverse the decline in its US electric vehicle market—according to Cox data, Volvo's electric vehicle sales in the US dropped by 72% in the first half of 2024.

Volvo Cars was founded in 1927, has been acquired by Geely, and operates in over 100 countries. Volvo Cars is listed on the Nasdaq Stockholm exchange under the ticker "VOLCAR B". As of the end of 2023, Volvo Cars has 43,400 employees worldwide. The company's headquarters, product development, marketing, and administrative functions are mainly located in Gothenburg, Sweden. It has manufacturing plants in Gothenburg, Ghent (Belgium), South Carolina (US), Chengdu, Daqing, and Taizhou (China), as well as R&D and design centers in Gothenburg and Shanghai (China)

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