Volvo’s chief commercial officer Bjorn Annwall said just last year that there were “no ifs, no buts” about selling only fully electric cars after the turn of the decade. The brand, according to Annwall, would not “sell a single car” that is not fully electric after 2030. But now, it’s finding some ifs and buts as well. 

As the demand for EVs proves to be uneven globally, especially for Western brands in China and with various uncertainties in the U.S., Volvo’s leadership team has taken a step back and begun to ponder if the future is meant to be more hybrid-focused—at least in the meantime.

Now, let’s be clear: Volvo is still ready to aim high with its goal of electrification. However, the rest of the world might not be ready. Infrastructure is still playing catch-up in some places, governments are feuding over the location of component sourcing and assembly, and the future of subsidies remains a mystery. And Volvo has already taken a hit to its electric plans with the EX30 getting delayed in the U.S. over anti-China tariffs. 

Luckily for Volvo, it has long had a strong hybrid and plug-in hybrid game, so if there’s more interest there in the near-term it’s well-positioned to give customers what they want. Here’s what Volvo’s CEO had to say in a recent webcast, according to Automotive News:

During a quarterly investor webcast, Volvo CEO Jim Rowan said he’s a “huge believer in electrical propulsion,” which he called a better technology than the internal combustion engine.

But Rowan acknowledged it will “take time to bridge different parts of the world for full electrification.”

Hybrids “form a solid bridge for our customers that are not ready to move to full electrification,” he said July 18. “Our plug-in hybrids and mild hybrids remain very strong and popular with our customers, and we will continue to invest in this lineup.”

Adding to the uncertainty of Volvo’s all-EV future is slumped EV sales in key markets like the U.S. and China. The automaker is now reportedly reconsidering whether or not its original promise of electrifying its entire lineup globally by 2030 is really sustainable, or if it needs to go back to the drawing board and decide whether or not the world is ready.

Even if Volvo can’t justify an EV-only lineup, the automaker still believes that battery propulsion tech is the way forward. If it can’t do battery-only, perhaps Volvo will move forward with hybrid powertrains instead, which is a win in the eyes of some dealerships.

Volvo dealers have reportedly cast a similar doubt on the brand’s fully electric direction as well. According to Automotive News, some dealerships say that they expect to sell gas-powered hybrids past the turn of the decade despite what brand executives have been promising over the past three years. “We will have to, or we will die,” said one dealer when speaking to Automotive News. “Volvo has gotten way out over their skis with this EV-only strategy.”

Another person familiar with Volvo’s future plans says that the automaker expects to hone in on hybrids over the next decade. Once the EV markets across the world—including the U.S. market—matures, revisiting the BEV-or-bust strategy may be back in the cards.

Volvo Backs Off EV-Only Promise, Will Likely Push Hybrids Instead

In a surprising turn of events, Volvo has announced that it will be backing off its previous promise to transition to an all-electric vehicle (EV) lineup by 2030. Instead, the Swedish automaker is now expected to focus on pushing hybrid vehicles as part of its sustainability efforts.

The decision to prioritize hybrids over EVs comes as a significant departure from Volvo’s previous commitment to leading the charge in the electric vehicle market. The company had previously stated that it would phase out all internal combustion engine vehicles by the end of the decade in favor of electric vehicles. This shift was seen as a bold move towards reducing the company’s carbon footprint and promoting sustainability in the automotive industry.

However, Volvo’s decision to shift its focus towards hybrid vehicles is not entirely unexpected. The company has faced challenges in achieving its goal of transitioning to an all-EV lineup due to issues such as supply chain constraints, regulatory hurdles, and infrastructure limitations. Additionally, hybrid vehicles are seen as a more viable option for consumers who may be hesitant to fully switch to electric vehicles due to concerns about range anxiety and charging infrastructure.

Despite the change in strategy, Volvo remains committed to reducing its overall carbon emissions and promoting sustainable transportation. The company has already made significant investments in electric vehicle technology and plans to continue developing EVs as part of its long-term sustainability goals.

In a statement, Volvo CEO Håkan Samuelsson emphasized the importance of offering a variety of electrified options to meet the diverse needs and preferences of consumers. He stated, “We believe that a mix of electric and hybrid vehicles is the best way to achieve our sustainability goals while also meeting the needs of our customers.”

Overall, Volvo’s decision to prioritize hybrid vehicles over EVs reflects the challenges and complexities of transitioning to a fully electric vehicle lineup. While the company may have deviated from its initial promise, its commitment to sustainability and reducing carbon emissions remains unwavering. It will be interesting to see how Volvo’s strategy evolves in the coming years as it continues to navigate the rapidly changing landscape of the automotive industry.