Volvo recently announced a shift in its electrification strategy, moving away from its initial plan to only sell electric cars by 2030. The automaker now aims for 90-100% of its sales to be electrified by 2030, with a focus on vehicles that have a plug rather than just mild-hybrid systems.
This change in strategy was revealed in Sweden during the debut of the 2025.5 XC90. Volvo clarified that the remaining 10% of sales will allow for a limited number of mild hybrids to be sold if necessary.
By 2025, Volvo expects that 50-60% of its sales will be electrified. The automaker currently has five electric cars in development, in addition to the electric and plug-in hybrid models already on sale.
Volvo is continuing to develop plug-in hybrid and mild hybrid vehicles, although specific numbers of models under development were not provided. A Volvo dealer mentioned to Automotive News Europe that selling plug-in hybrids is crucial for the company’s survival.
Despite the push towards electrification, a recent Bloomberg report predicts that plug-in hybrids will only account for 10% of global new-car sales by 2030. Volvo cited slow development of charging infrastructure and the withdrawal of government incentives in some markets as challenges to achieving their electrification goals.
The automaker emphasized the need for stronger and more stable government policies to support the transition to electrification. Volvo has set a target to achieve net zero greenhouse gas emissions by 2040.
In addition to the recent announcements, Volvo is currently launching the EX90 in the U.S., introducing the 2025.5 XC90 plug-in hybrid, and teasing the electric ES90 sedan. The company remains committed to its goal of increasing the number of electrified vehicles in its lineup and reducing its overall environmental impact.
