Volvo Cars has abandoned its 2023 goal to achieve a full electric lineup, as the Swedish automaker realized that profit growth will come from plug-in hybrids.
Reuters said Wednesday that Volvo Cars had removed its original target to go fully electric by 2030. However, it stated that it would still be delivering hybrid models.
The demand for EVs has raised the attention of big companies that focus on EVs due to the lack of affordable units and the slowdown of charging point roll-outs.
Read also: Volkswagen Faces Pressure to Reduce Operation Cost, Considers Closure of German Factories
Volvo Cars revealed its initial plan was to target 90% and 100% of its inventory to be sold as electric or plug-in hybrids. However, mild hybrids will make up the remaining 10%.
The company shared that its future profit growth would be highly supplemented by the plug-in hybrids. XC90, one of the company's SUVs, will be revamped by the end of 2024.
The automaker also shared that Volvo Cars is adapting to customer demands and the constant change of the market.
Volvo Cars CEO Jim Rowan said that while the company believes going electric is the future, the transition is not linear. He added that demands and trends are factors worth considering for the endeavor.
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