Volvo cuts 2030 EV targets, cites market conditions

Citing its reasons for the decision, Volvo said changing market conditions had affected the target it had set three years ago. It anticipates 90% of its output to be electric and plug-in hybrids by 2030. 

As reported by the BBC, Jim Rowan, CEO of Volvo spoke of his “resolute belief” in an electric future but followed up by saying: "However, it is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds."

This news comes as Volvo releases its global sales, reporting a 3% increase this August compared with the same period last year. It reported that its sales of electrified cars, fully electric and plug-in hybrid models grew 47% compared with last year and accounted for 47% of cars sold during August. 

“The performance in Europe was particularly encouraging, as the sales of our EVs continue to grow at a rapid pace, with the EX30 leading the way,” said Björn Annwall, Chief Commercial Officer and Deputy CEO at Volvo in the announcement.

Concern the UK won’t meet Net Zero targets

In July of this year, the Climate Change Commission said that the UK’s emissions were less than half of levels recorded in 1990, thanks to the phasing out of coal and the rising of renewables, but that it expected “ambitious action” across industries to meet the 2030 target. The Conservative government under Rishi Sunak backpedalled on this target, extending it to 2050. Labour has pledged 2030.

“The country’s 2030 emissions reduction target is at risk. The new Government has an opportunity to course-correct, but it will need to be done as a matter of urgency to make up for lost time,” said Professor Piers Forster, interim Chair of the Climate Change Committee. “Action needs to extend beyond electricity, with rapid progress needed on electric cars, heat pumps and tree planting.”

In the same month, Porsche admitted it had set itself ambitious targets for electric vehicle manufacturing, with plans for 80% of sales to be all-electric by 2030. It has since stated that it can deliver on this target “dependent on customer demand and the development of electromobility”.

And even earlier this year, in May, the Society of Motor Manufacturers and Traders (SMMT) informed members of the House of Commons Transport Select Committee that the market share of electric cars is anticipated to be 19.8% this year, a great deal less than the 22% manufacturers are obligated to sell as part of the Zero Emission Vehicle mandate.

Volvo’s news deals a devastating blow for hopes that sales of electric vehicles will be one part of an overarching plan to cut back on carbon emissions and reduce global warming, but it doesn’t appear to be the only car manufacturer grappling with the electric vehicle problem.