Volvo Cars adjusts electrification goals

MANILA: Volvo Cars has adjusted its electrification goals, which according to the brand was spurred by changing market conditions and customer demands.

Previously, the Swedish carmaker aimed for all of its offerings to be fully electric by 2030. However, its most recent announcement states that only 90 percent of its lineup will be electrified — a mix of both all-electric and hybrid models.

Further, the remaining 10 percent 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 stated.

“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 the percentage of electrified products to come in between 50 and 60 percent. Well before the end of this decade, the Gothenburg-headquartered carmaker will have a complete line-up of fully electric cars available.

Poised to make the switch to become an electric-only car brand, Volvo Cars will make the move to full electrification as and when the market conditions become 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 company 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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