- Volvo may need to rely on plug-in hybrids for longer than originally expected
- Slower EV growth could stretch Volvo’s forecast of going all-electric by 2030
- Hybrid electric vehicles (PHEVs) are expected to peak at no more than 10% of the global new car market share by 2030
Volvo is reconsidering its goal of selling only electric cars after 2030 amid dealer complaints and slowing electric vehicle growth, according to a report. European Auto News.
The automaker’s U.S. dealers are expected to continue selling 48-volt mild hybrids and plug-in hybrids over the next decade, and Volvo is preparing to do so, the industry trade journal reported, citing anonymous sources with knowledge of the plans.
“We have to do it, otherwise we will die,” a Volvo dealer who asked to remain anonymous told Automotive News Europe. “Volvo has gone too far with this electric-only strategy.”
Volvo XC90 2025
Over the next decade, Volvo will focus on delivering plug-in hybrid car in the United States and other markets while waiting for EV demand to grow further, a person familiar with the automaker’s plans said, adding that Volvo executives are “praying that PHEVs will start to be viewed positively by different governments.”
A recent report by Bloomberg New Energy Finance estimates that plug-in hybrid vehicles will peaked at 10% of global new car sales by 2030, after which sales are expected to decline lower battery prices make electric cars cheaper. In the United States, plug-in hybrids will account for about 20% of all plug-in vehicle sales and 2% or all new vehicle sales by 2023, according to the Department of Energy, but could lose market share to hybrids due to their higher costs.
Volvo has been consistent its plug-in hybrid car into its EV product strategy more comprehensively than any other automaker—even going so far as to cover the tailpipes. Although Volvo’s U.S.-market plug-in hybrids have the longest electric range and highest fuel efficiency— S60 Recharge—will no longer be produced after 2025, the automaker will maintain plug-in hybrid versions of its more popular crossover models.
Volvo S60 2025
The next stage in Volvo’s electric car transition also faces a hurdle in the form of high tariffs on EX30 made in Chinawas supposed to be a more affordable, volume-production model for the brand but has now been delayed until 2025. EX90 SUV Production has begun in South Carolina, although lingering software issues mean the first cars will be delivered without certain features enabled.
Other automakers are taking a similar approach. Audi and Porsche will emphasize plug-in hybrids, with expectations of continuing to sell current-generation hybrid and gasoline-powered versions its Cayenne SUV along with an all-electric version next decade. General Motors has reinforced its all-electric strategy with plug-in hybrids while EV production target delayed.
