Volvo Cars has officially abandoned its ambitious target of selling 1.2 million cars per year by 2025.
CEO Jim Rowan confirmed that the goal is no longer realistic.
According to Boosted, the Swedish-Chinese brand had originally set the target when it went public three years ago, aiming for significant growth.
But it has since been forced to adjust its strategy due to tougher-than-expected market conditions.
In 2020, Volvo’s leadership, including former CEO Håkan Samuelsson, predicted a 55% increase in production and sales by 2025.
They also expected a profit margin of 8-10%. But unpredictable changes in the global car industry, especially in the electric vehicle sector, disrupted those plans.
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Now, Volvo anticipates selling just over 800,000 cars in 2024.
This marks an 11% increase from the previous year but falls far short of the original goal. Rowan acknowledged that the electric vehicle market has proven more difficult than expected.
As a result, Volvo is rethinking its approach.
The company has also backed away from its pledge to sell only electric cars by 2030. There simply isn’t enough demand yet. Instead, Volvo plans to focus on gaining market share in the premium segment, though Rowan has not provided many details.
As part of this strategy, Volvo will introduce four new electric cars. They also plan to update their plug-in hybrid models in the 60 and 90 series.
