Swedish carmaker Volvo Cars is abandoning its target to go all-electric by 2030, as interest in hybrid powertrains grows globally, Kallanish reports.

The company said on Wednesday it remains committed to a fully electric future, but it is adjusting its electrification ambitions. Now it aims for 90% of its global sales volume by 2030 to consist of electrified cars. That means a mix of all-electric (BEV) and plug-in hybrid (PHEV) models.

However, the remaining 10% will allow a “limited number” of mild hybrid models, those running on an internal combustion engine, to be sold – “if needed.” The move reflects “changing market conditions and customer demands,” the company says.

A slower-than-expected rollout of charging infrastructure, withdrawal of government incentives in some markets and additional uncertainties created by recent tariffs on EVs in various markets have all played a role in the company’s decision.

“We are resolute in our belief that our future is electric,” states ceo Jim Rowan. “However, it is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds of adoption. We are pragmatic and flexible, while retaining an industry-leading position on electrification and sustainability.”

Electrified products should account for 50-60% of all its sales volume by 2025. BEVs meanwhile, accounted for 26% of its global sales during the second quarter of 2024. This is the highest share among its premium peers, according to Volvo.

Also on Wednesday, the company unveiled improvements to its best-selling flagship hybrid SUV, the XC90. In addition to an exterior facelift, the vehicle also has the latest user experience seen in the new BEVs EX90 and EX30.  

Volvo, which is owned by China’s Geely Holding, claims that continuing to develop plug-in and mild hybrid cars provides a “balanced portfolio that serves as a clear bridge to an all-electric future.”

With five BEV models currently on the market, the carmaker says it will have a complete BEV line-up “well before the end of this decade.” It has also called for “stronger and more stable government policies” to support the transition to electrification.