Volvo’s Line-Up Set to Expand as Brand Abandons Electric-Only Pledge

Volvo’s line-up is expected to see a significant increase in the coming years after the brand decided to backtrack on its goal of becoming electric-only by 2030. The deputy CEO of Volvo believes that the company is well-equipped to handle this expansion.

Volvo’s Electric-Only Target Reconsidered

In 2021, Volvo announced its plan to exclusively sell electric cars starting in the next decade. However, due to the slow adoption of electric vehicles in certain global markets and the recent decline in EV sales growth, Volvo has decided to revise its strategy.

Instead, Volvo now aims to have between 90% and 100% of its global sales consist of electrified cars (plug-in hybrid or electric) by 2030, with the remaining percentage being mild hybrids.

By 2025, Volvo expects plug-in hybrids and electric vehicles to make up 50% to 60% of its line-up, an increase from the current 48%.

Volvo Introduces Revamped XC90

Volvo made this decision during its ’90/90 Day’ event, where it unveiled an extensively updated version of the XC90. The new XC90 will be sold alongside the upcoming EX90 electric vehicle.

While Volvo remains committed to its EV launch program, including the release of the ES90 saloon next year, the lifespan of existing petrol models may be extended.

Björn Annwall, the deputy CEO of Volvo, stated that having a diverse range of fully electric, plug-in hybrid, and mild hybrid cars gives Volvo flexibility. He emphasized that Volvo’s narrow model range allows them to handle the transition from internal combustion engines to electric vehicles more effectively than competitors with a larger product portfolio.

Annwall believes that Volvo can still be a market leader in electrification, as the company is currently selling more electric vehicles than its traditional competitors. He emphasized the importance of adjusting to reality and delivering results in the present, rather than solely focusing on future plans.

Volvo CEO Emphasizes Pragmatism

Volvo CEO Jim Rowan stated that the decision to revise the 2030 pledge does not diminish Volvo’s commitment to electrification. The company is currently developing a new platform, a new generation of motors, and an advanced software architecture for its future electric vehicles.

Volvo previously sold its internal combustion engine development division to Aurobay, a joint venture between Volvo and its parent company Geely. While Volvo has divested its stake in Aurobay, the company will continue to develop the mild hybrid and plug-in hybrid powertrains that Volvo plans to use.

Rowan emphasized the importance of pragmatism in an industry undergoing significant change. He stated that as CEO, his role is to position the company to adapt to various scenarios and make choices based on market demands. If necessary, Volvo will continue investing in mild hybrids and plug-in hybrids for a longer period to meet customer needs.

Rowan highlighted the unpredictability of the market, citing examples such as the pandemic and the semiconductor shortage. He believes that being pragmatic and responsive to market conditions is more important than rigidly sticking to predetermined plans.

Ultimately, Volvo aims to provide customers with the vehicles they need while maintaining its position as a leader in the electrification of the automotive industry.