Car company Volvo has announced it is abandoning its goal of producing only fully electric cars by 2030 and said it expects to sell some hybrids by then as well.
The automaker blamed changing market conditions for its decision to abandon a target announced three years ago.
Against this backdrop, the industry faces slowing demand for electric vehicles (EVs) in some major markets, as well as uncertainty arising from trade tariffs on Chinese-made EVs.
Volvo, which has historically touted its environmental credentials, joins other major automakers General Motors and Ford in abandoning EV ambitions.
Volvo currently expects that by 2030 at least 90% of its production will be made up of electric vehicles and plug-in hybrids.
The Swedish company may also sell a small number of so-called mild hybrids, which are more conventional vehicles with limited electric assistance.
“We firmly believe our future is electric,” Volvo CEO Jim Rowan said in a statement.
“However, it is clear that the transition to electrification will not be linear, with customers and markets moving at different speeds.”
The company also said the business environment for electric vehicles has changed due to factors such as slow construction of charging infrastructure and the removal of consumer incentives.
Europe is particularly feeling the slowdown in demand for electric vehicles, partly due to the elimination of purchase subsidies in countries such as Germany.
According to the European Automobile Manufacturers Association, EU electric vehicle registrations fell by nearly 11% in July.
Volvo, which is controlled by Chinese auto giant Geely, will also be affected by import tariffs on Chinese-made electric vehicles in Europe and North America because it has factories in China.
last week, Canada announces 100% tariff The United States has imposed restrictions on the import of Chinese-made electric vehicles after the United States and the European Union issued similar statements.
Western countries accuse China of subsidizing its electric vehicle industry, giving its automakers an unfair advantage.
China has Denies the accusations and criticizes tariffs as “discrimination”.
Ford has also been scaling back its electric vehicle ambitions. Just last month, the American automaker announced obsolescence plan large three-row all-electric sport utility vehicle (SUV) and delayed the launch of its next-generation electric pickup truck.
Rival General Motors also cut its electric vehicle production targets last year.
