Barron's Roundtable panelists discuss why some automakers are scaling back their plans to roll out electric vehicles.
Volvo on Wednesday Electric Vehicles The company said it expects to continue offering hybrid models as part of its lineup through 2030.
The Swedish company and other automakers see demand for EVs slowing as price-conscious car buyers turn to hybrids and gasoline-powered vehicles due to concerns about affordability and access to charging stations.
Volvo etc. EV Manufacturer Europe is also bracing for the impact of tariffs on Chinese-made electric vehicles, which are being imposed in the United States in a similar move.
In a statement, the company said it aims for 90-100 percent of its global sales to be made up of fully electric vehicles and plug-in hybrids by 2030, with the remaining 0-10 percent of its lineup “offering a limited number of mild hybrid models as needed.”
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Volvo has scaled back its goal of having all its vehicles electric by 2030. (Beata Zawrzel/NurPhoto via Getty Images/Getty Images)
The company has backtracked on its plan to go fully electric by 2030 because it now expects the proportion of its electrified lineup, including EVs and hybrids, to be 50% to 60% by 2025. In the second quarter of 2024, the share of fully electric vehicles was 26%, and EVs and hybrids combined accounted for 48% of the electrified lineup.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| Very | Volvo AB | 25.253 | -0.49 |
-1.89% |
“Volvo Cars remains committed to its long-term goal of full electrification and the company's long-term investment plans and product strategy remain directed towards fully electric vehicles,” the company said in a statement. “The adjustment to the target is not expected to have a material impact on the company's capital expenditure plans.”
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Volvo has room for up to 10% of its range to be “mild hybrids” by 2030. (Artur Widak/NurPhoto via Getty Images/Getty Images)
Concerns about EV range and supply have led drivers to switch to hybrids more frequently last year. Charging infrastructureHybrid models are often more affordable than fully EV models, offering consumers a cost advantage in an era of high auto loan interest rates.
According to a survey released by J.D. Power in May, Availability of charging stations This is the main reason car buyers are not interested in EVs, with 52% citing it as a reason for their reduced interest in EVs.
That figure is up three percentage points from a year ago, and “concerns about public charging infrastructure are only getting worse,” J.D. Power said.
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Volvo stressed that it still believes electric vehicles are the future of its lineup. (Reuters photo)
Nevertheless Consumer concerns In the short term, Volvo remains optimistic that EV and hybrid electric vehicle options are the future of its lineup.
“We believe the future is electric.” Volvo CEO Jim Rowan “Electric vehicles offer a superior driving experience and increase the potential to leverage advanced technologies that improve the overall customer experience,” the company said in a statement.
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“But it's clear that the transition to electrification will not be linear, and customers and markets are adopting it at different speeds,” Rowan explained. “We are being pragmatic and flexible, and we remain an industry-leading position on electrification and sustainability.”
Reuters contributed to this report.
