The automaker gave up on a target it had declared just three years prior, citing shifting market conditions as the reason.
It occurs at a time when the market for electric vehicles (EVs) is slowing down in several significant regions and is uncertain since trade restrictions on EVs manufactured in China have been imposed.
Along with other big automakers like General Motors and Ford, who have also scaled down on their electric vehicle aspirations, is Volvo, a company that has long bragged about its environmental credentials.
Volvo currently projects that by 2030, plug-in hybrids and electric vehicles will account for at least 90% of its total production.
The Swedish company may also sell a very small quantity of “mild hybrids,” which are more conventional vehicles with less electrical assistance.
“The shift won’t be linear.”
“We are steadfast in our conviction that electric vehicles will rule the future,” stated Volvo CEO Jim Rowan in a statement.
“Yet, it is evident that markets and consumers are evolving at varying rates and that the switch to electrification will not be linear.
