Volvo Cars ditches 2030 EV-only target: Report

Volvo Cars has done away with its target of going all electric by 2030, Reuters reported earlier this month. 

Volvo Cars noted in a statement that by 2030, it was targeting 90-100% of cars sold to be fully electric or plug in hybrid models, whereas 10% would be so called mild hybrids, Reuters noted. 

Major auto players have been seen reduced demand for electric vehicles on the back of a lack of affordable models and slow rollout of charging points, while also preparing themselves for the effects of European tariffs on electric cars made in China, the newswire noted. 

Volvo Cars said in a separate statement that plug-in hybrids would form a crucial part of its future profit growth. It also noted that it would rehash its hybrid XC90, with first customers receiving the SUV by the end of the year.

The company sells a mix of electric and hybrid cars, and had until now remained steadfastly committed to its plans to only sell fully electric cars by 2030 even as its rivals began scaling back their ambitions. Some of Volvo's flagship fully electric cars are the EX90 and the EX30, both SUVs.

Growing demand for hybrid cars has prompted a strategic shift across a sector that had initially aimed to phase out hybrids in favour of fully electric vehicles. 

Volvo Cars, majority-owned by China's Geely, said it was responding to changing market conditions and customer demands.