Volvo has abandoned its goal of making all-electric cars by 2030 and says it now hopes to sell some hybrids by then.
The automaker blamed changing market conditions for its decision to abandon the target it announced three years ago.
The incident comes as the industry faces slowing demand in some major electric vehicle (EV) markets and uncertainty over the imposition of trade tariffs on electric vehicles made in China.
Volvo, which has always prided itself on its environmental credentials, has now joined other major automakers, General Motors and Ford, in abandoning its electric vehicle ambitions.
Volvo now expects at least 90% of its output to come from both electric and plug-in hybrid vehicles by 2030.
The Swedish company may also sell a small number of mild hybrids, which are conventional cars with limited electric assistance.
“We firmly believe that our future is electrification,” Volvo CEO Jim Rowan said in a statement.
“However, it is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds.”
The company also said the electric vehicle business environment has changed due to factors such as slow deployment of charging infrastructure and reduction of consumer incentives.
The slowdown in demand for electric vehicles is being felt particularly in Europe, partly due to the end of purchase subsidies in countries like Germany.
Electric vehicle registrations across the European Union fell nearly 11% in July, according to the European Automobile Manufacturers Association.
Volvo is majority owned by Chinese auto giant Geely and, because it uses factories in China, would also be affected by tariffs on imports of Chinese-made electric vehicles into Europe and North America.
Last week, Canada announces 100% tax rate on the import of Chinese-made electric vehicles, following similar announcements from the United States and the EU.
Western countries accuse China of subsidizing the electric vehicle industry, giving automakers an unfair advantage.
China has denied those allegations and criticized the tariffs. is “discriminatory”.
Ford has also scaled back its electric vehicle ambitions. Just last month, the US auto giant announced that cancel the plan for its all-electric, three-row SUV and delayed the launch of its next electric pickup truck.
Competitor General Motors also cut its electric vehicle production target last year.
