Swedish automaker Volvo Vehicles on Wednesday deserted its near-term aim of promoting solely electrical autos, citing a should be “pragmatic and versatile” amid altering market situations and cooling demand.

Volvo Vehicles, which is owned by China’s Geely Holding, had been among the many first legacy carmakers to vow an entire change to EVs. The agency mentioned its long-term intention stays to grow to be a totally electrical carmaker.

Nonetheless, the corporate introduced that it now goals for between 90% and 100% of its automobiles offered to be absolutely electrical or plug-in hybrid fashions by 2030, whereas as much as 10% will enable for a restricted variety of delicate hybrid fashions.

The goal replaces a 2021 pledge for Volvo Vehicles’ lineup to be absolutely electrical by the tip of the last decade.

The transfer means Volvo Vehicles follows within the footsteps of different {industry} gamers in scaling again its EV ambitions. Germany-based carmakers Mercedes-Benz Group and Volkswagen have each beforehand introduced a shift of their respective EV methods.

“An electrical automotive gives a superior driving expertise and will increase prospects for utilizing superior applied sciences that enhance the general buyer expertise,” Jim Rowan, CEO of Volvo Vehicles, mentioned Wednesday within the written assertion.

“Nonetheless, it’s clear that the transition to electrification is not going to be linear, and clients and markets are transferring at completely different speeds of adoption,” he mentioned.

“We’re pragmatic and versatile, whereas retaining an industry-leading place on electrification and sustainability,” he mentioned.

Shares of Volvo Vehicles traded greater than 4% decrease Wednesday.

Volvo Vehicles mentioned the share of absolutely electrical automobiles in its lineup stood at 26% throughout the second quarter of 2024, noting that that is the best degree amongst its premium friends. It mentioned its electrified share, referring to EVs and plug-in hybrids, accounted for 48%.

Underlining the challenges going through its electrification ambitions, Volvo Vehicles mentioned there had been a slower-than-expected rollout of charging infrastructure, a withdrawal of presidency incentives in some markets and extra uncertainty prompted by current tariffs on EVs in numerous markets.

Volvo Vehicles mentioned these developments present that there continues to be a necessity “for stronger and extra steady authorities insurance policies” as a way to assist the transition away from fossil fuels.