Volvo puts breaks on electric cars plan

Volvo has revised its strategy regarding electric vehicle sales, now targeting 90 to 100% of its global sales to be either fully electric or plug-in hybrid by the end of the decade. This change comes after a decline in demand for battery vehicles and is influenced by several factors, including a slower rollout of charging infrastructure and the withdrawal of government incentives in various markets. Recent tariffs on electric vehicles have also contributed to the uncertainty surrounding the transition to electrification. The company had initially set a goal in 2021 to sell only fully electric cars by 2030, but the evolving market dynamics have prompted a reassessment of this ambitious target. Executives at Volvo acknowledged that the transition to electric vehicles is not progressing uniformly across different regions, with customers adopting these technologies at varying speeds. This announcement follows a series of recent reversals by Volvo, including the decision to reintroduce its estate cars in the UK market after previously discontinuing them. The new models will feature hybrid petrol engines, reflecting the current demand trends as interest in electric vehicles appears to be stalling. Volvo is not alone in this shift; other major car manufacturers, such as Renault, Porsche, and Mercedes-Benz, have also expressed concerns about the pace of the transition to electric vehicles. These companies are adjusting their strategies to accommodate a more flexible approach to the production and sale of combustion engine vehicles, indicating a broader trend within the automotive industry.