Volvo Changes Business Strategy In Electrification Segment Due To Market Conditions And Consumer Tastes

Volvo EX90. (Doc. Volvo Cars)

JAKARTA - The well-known producer Volvo has withdrawn its promise to fully sell electric cars in 2030, which has been launched since 2021.

Citing from its official website, the Swedish brand said in a statement that it had adjusted its business ambitions in the electrification segment, due to changes in market conditions and customer demand.

The adjusted business ambition was expressed ahead of Volvo Cars Capital Market Day which took place in Gothenburg, Sweden.

"By 2030, it is estimated that electric cars will represent 90-100 percent of the global sales volume. The remaining 10 percent will allow sales of a limited number of low-principles hybrid models, if needed," Volvo said in a statement.

However, Volvo is considered to be in the right position to benefit from the transition from ICE. Currently, there are five complete electric vehicles on the market and five more are in the development stage, and by 2025, Volvo estimates the percentage of electricity-mediated products will reach between 50 and 60 percent.

"Volvo Cars is at an important and interesting crossroads. We have laid the foundation for the last few years that put us in a strong position like it is today," said Volvo Cars CEO Jim Zan.

He revealed that the increasingly sharp business ambition announced by the company further strengthens its commitment to boost value as a business.

"But remain loyal to our goals. As I said before, business is not a game of perfection, it is about progress and sustainable adaptation," he concluded.