Volvo appears to have abandoned its goal of producing only electric cars by 2030, saying it will also sell some hybrid vehicles until then.
The automaker announced its goal of fully electric cars three years ago, but now says conditions market have led it to change plans. The industry is currently facing a slowdown in demandin some major electric vehicle (EV) markets, and uncertainty over trade tariffs on EVs made in China.
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Volvo now expects at least 90% of its production to be electric and plug-in hybrid cars by 2030.But it may also sell a small number of so-called mild hybrids, which are more conventional vehicles with limited electric assistance.
“We stand by our belief that our future is electric,” said Jim Rowan, Volvo’s CEO. “However, it is clear that the transition to electrification will not be linear and customers and markets move at different speeds.”
Volvo also said the business climate for electric cars has changed, due to factors such as the slow development of charging and the withdrawal of consumer incentives.
Market analyst Anna McDonald agrees , saying consumers are still concerned about the transition to EVs.
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"purchases car have ended and there is also this ongoing lack of demand because consumers are worried about charging," he told BBC Today. "It is still the case that electric cars remain more expensive."
As he explained, both the EU and the US impose tariffs on imported Chinese cars, which means the vehicles have to be manufactured outside of China, which drives up prices.
It's worth noting that Volvo is majority-owned by Chinese auto giant Geely. Because it uses factories in China, it will also be affected by tariffs on Chinese-made EV imports to Europe and North America.
A few days ago, Canada announced that it would impose 100% tariffs on imports of electric vehicles made in China. Similar announcements had been made by the US and the EU.
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The West has accused China of subsidizing its electric vehicle industry, giving domestic manufacturers an unfair advantage. China has rejected these allegations and says these tariffs are unfair.
Volvo’s decision to change its timetable for fully electric carshighlights the complexity and challenges of the transition to a more sustainable and environmentally friendly future. As consumer preferences, market conditions and technological developments continue to change, it is important for car companies to remain flexible and adapt their strategies accordingly. Volvo’s move also highlights the need for continued innovation and collaboration between automakers, governments and other stakeholders to address these challenges and accelerate the adoption of electric vehicles. This requires investment in charging infrastructure, educating consumers about the benefits of electric vehicles and working with other stakeholders to drive meaningful change.
Source: www.bbc.com
