Another best-selling carmaker abandons plans to sell only EVs by 2030 – with three reasons behind shock U-turn

ANOTHER best-selling carmaker has abandoned its plans to only sell EVs by 2030 – with three reasons behind the shock U-turn.

The firm joins Ford as the latest industry giant to back off its ambitious Net Zero targets despite tightening legislation in the UK.

Swedish brand Volvo, beloved by millions of Brits for their economical and stylish family SUVs, has watered down its self-imposed targets after concluding that full electrification was a step too far.

The company admitted that it would not meet the target this week as it plans to retain some hybrid models beyond the initial 2030 deadline.

Instead, it now expects to be able to stretch EV sales to 90% of its total output by that date.

The remaining 10% will be whittled down over the subsequent five years, in time to comply with the EU’s ban on new petrol and diesel car sales, coming into force in 2035.

Bosses have blamed the decision on a trio of factors squeezing their margins.

Namely, slower than anticipated demand for EVs combined with the withdrawal of incentives to buy one and the lingering uncertainty over whether Europe will enforce hefty tariffs on electric cars made in China.

Several big-name manufacturers have already invested in Chinese factories and could see profits slashed by up to 25% per unit if the move goes through.

Just yesterday, rival Cupra said that its “whole future was at risk” if the tax is imposed.

The decision means that certain Volvo models will not be available in the UK from 2030, after the new Government reinstated the original date of the UK’s ICE ban after it was delayed to match the EU’s deadline last year.

That means that Volvo will not legally be allowed to sell its hybrid cars here for five years before they are phased out altogether.

Jim Rowan, Volvo’s chief executive, said: “We are resolute in our belief that our future is electric.

“However, it is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds.”

The announcement comes just a few months after Ford, one of the largest car brands in the world, broke the industry trend by scaling back its zero-emission ambitions.

Marin Gjaja, chief operating officer of the firm’s EV division, told at the time: “I don’t think we can go all in on anything until our customers decide they’re all in, and that’s progressing at different rates around the world.

“I think customers have voted, and they told us [2030] was too ambitious, is what I would say – and I think everyone in the industry has found that out the hard way.

“I would also say reality has a way of making you adjust your plans.”

Nonetheless, several other huge firms remain committed to the 2030 date, including Jaguar Land Rover and Vauxhall.