Major car makers have registered slowing demand for EVs partly due to a lack of affordable models and the slow roll-out of charging points, and Volvo Cars is also bracing for the effects of European tariffs on electric cars made in China.
Volvo Cars said in a statement that by 2030 it now aimed for between 90 per cent and 100 per cent of cars sold to be fully electric or plug-in hybrid models while up to 10 per cent would be so-called mild hybrid models if needed.
Volvo Cars sells a mix of electric and hybrid cars, and had until now remained steadfast on its plans to only sell fully electric cars by 2030 even as its rivals began scaling back their ambitions.
Many car makers have noted growing demand for hybrid cars, prompting a strategic shift across a sector that had initially aimed to phase out hybrids in favour of fully electric vehicles.
A slow introduction of charging infrastructure and drivers' concerns about EVs driving ranges are among the reasons buyers have gravitated towards the often more affordable and convenient hybrids.
Volvo Cars, which is majority-owned by Chinese company Geely, said it was responding to changing market conditions and customer demands.
By 2025, Volvo Cars expects electrified cars, which includes both full EVs and hybrids, to account for between 50 per cent and 60 per cent of sales volumes.
The previous 2025 target was for at least 50 per cent fully electric cars, with the rest hybrids.
"We are resolute in our belief that our future is electric," CEO Jim Rowan said.
"However, it is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds."
The company also called out for "stronger and more stable" government policies to support the electrification.
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