Volvo Cars has abandoned its ambitious target to sell only electric cars by 2030 amid a global slowdown in growth for battery-powered vehicles.
The Geely-owned Swedish group had been the first among traditional carmakers to pledge a complete switch to electric, and remains the most bullish about the transition even as rivals including Ford and General Motors have also walked back on their EV targets.
Jim Rowan, Volvo’s chief executive, on Wednesday blamed changing market conditions and consumer worries over the lack of charging infrastructure for its revised target.
“We will be ready to go fully electric this decade, but if the market, infrastructure and customer acceptance are not quite there, we can allow that to take a few more years,” Rowan said as he showcased Volvo’s new electric and plug-in hybrid flagship sport utility vehicles.
Sales growth of EVs have slowed globally mainly owing to a lack of affordable offerings with battery-powered cars costing about 20% to 30% more than vehicles with conventional petrol engines. The decline in sales growth has been particularly acute in Europe, where Germany and other countries have abruptly ended subsidies for EV purchases.