The Volvo car company has announced that it has abandoned its goal of producing all-electric cars by 2030, saying it now expects to sell more hybrid cars by that date.
The carmaker blamed changing market conditions for its decision to abandon the policy it had announced three years ago.
It comes as the industry faces declining demand in some major markets for electric vehicles (EVs) and uncertainty over the imposition of trade tariffs on EVs made in China.
Volvo, which has been showing off for the environment, has joined other major automakers, General Motors and Ford, which have also scaled back their EV ambitions.
Volvo now expects at least 90% of its production to be both electric cars and plug-in hybrids by 2030.
The Swedish company may also sell a small number of so-called mild hybrids, which are conventional vehicles with limited electric assistance.
“We are firm in our belief that our future is electric,” said Jim Rowan, Volvo’s chief executive, in a statement.
“However, it is clear that the transition to electrification will not be parallel, and customers and markets are moving at different speeds.”
The company also said that the business environment for EVs has changed, due to factors such as the slow roll-out of charging infrastructure and the withdrawal of consumer subsidies.
The decline in demand for EVs has been particularly felt in Europe in part due to the end of purchase subsidies in countries such as Germany.
Registrations of EVs in the European Union fell by about 11% in July, according to the European Automobile Manufacturers Association.
Volvo is owned by Chinese auto giant Geely and because it operates factories in China, it will also be affected by tariffs on imports of Chinese-made EVs in Europe and North America.
Last week, Canada has announced a 100% tariff. on sales of electric vehicles made in China, after similar announcements by the US and the EU.
The West has accused China of subsidizing its EV industry, giving its automakers an unfair advantage.
China has done it he dismissed those allegations and criticized the tariffs as “prejudice”.
Ford has also backed off on its EV ambitions. Just last month, the American car giant announced that it was cancellation of plans with large, three-row, all-electric vehicles (SUVs) and delaying the launch of its next electric pickup truck.
Its rival General Motors has also been cutting EV production targets for the past year.
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