Volvo reportedly reconsiders its commitment to exclusively marketing electric vehicles (EVs) beyond 2030, amidst growing concerns from dealerships and slower-than-expected EV adoption rates, according to Automotive News Europe.
The automaker’s U.S. Sellers are poised to aggressively market 48-volt mild-hybrid and plug-in hybrid models throughout the next decade, according to reports. Citing anonymous sources familiar with the plans, a prominent business publication revealed that Volvo is already making strategic preparations to capitalize on this trend.
A Swedish car manufacturer’s representative, who wished to remain anonymous, told Automotive Information Europe, “We have no choice but to succeed; otherwise, our company will face extinction.” “Volvo’s gone all-in on their electric strategy with this bold move.”
2025 Volvo XC90
By the end of the next decade, Volvo plans to successfully supply electric vehicles in the United States. As government policies and incentives shape consumer preferences, Volvo is poised to capitalize on emerging demand for electric vehicles (EVs) in various markets. According to an individual familiar with the automaker’s plans, executives are hopeful that plug-in hybrid electric vehicles (PHEVs) will gain favor with governments worldwide.
According to a recent Bloomberg New Energy Finance report, the market for plug-in hybrids is expected to reach a plateau of 10% of global new-car sales by 2030, after which demand is likely to decline as electric vehicles become increasingly affordable. According to the Department of Energy, within the United States, plug-in hybrids accounted for approximately 20% of total plug-in vehicle sales and 2% of overall new-car sales in 2023, but may cede ground to hybrid models due to rising costs.
Volvo seamlessly integrates its plug-in hybrids within its electric vehicle (EV) product strategy, a feat unmatched by any other full-line automaker, with the extent of even concealing tailpipes. Although the US-market Volvo plug-in hybrid with the longest electric range and highest fuel efficiency—the XC90 Recharge—will cease production at the end of the 2025 model year, the company will continue to offer plug-in hybrid variants of its more popular crossovers.
2025 Volvo S60
Volvo’s electric vehicle (EV) transition has encountered another hurdle in the form of prohibitive tariffs for the planned entry-level, high-volume model, which has now been pushed back to 2025. The automaker has begun manufacturing its latest model in South Carolina, but pending software updates mean that the initial vehicles will roll off the assembly line without certain features fully enabled?
Multiple automotive companies are adopting a similar approach. Audi and Porsche are poised to intensify their focus on plug-in hybrids, with Porsche expecting a seamless transition by promoting current-generation gasoline and hybrid variants of its Cayenne SUV alongside an all-electric model throughout the next decade. General Motors has modified its initial plan for an all-electric strategy by incorporating plug-in hybrid options while pushing back electric vehicle production targets.
