The Swedish-rooted, Chinese-owned company Volvo has scaled back its electric vehicle ambitions, announcing Wednesday that it will no longer aim to produce only electric cars by 2030. The company also reduced its profit margin target from over 8% to between 7-8% and dropped its sales goal of SEK 550-600 billion. Instead, Volvo aims to grow faster than the premium car market.
This shift comes amid increased global trade complexities and new EU tariffs on Chinese-produced electric vehicles. Volvo’s popular EX30 model, currently made in China, is directly affected by these tariffs. The company now plans for 90-100% of its future sales to be electric or plug-in hybrids, with up to 10% being mild hybrids.
This marks the second time this year that Volvo has adjusted its targets. CEO Jim Rowan emphasized the need to balance business value with the company’s long-term purpose.
Source: B.T.
