Sweden's Volvo Cars scraps plan to only sell electric vehicles by 2030

Swedish automaker Volvo Cars on Wednesday abandoned its near-term goal of only selling electric vehicles, citing a need to be "pragmatic and flexible" amid changing market conditions and cooling demand.

Volvo Cars, which is owned by China's Geely Holding, had been among the first legacy carmakers to promise a complete switch to EVs. The firm said it's long-term aim remains to become a fully electric carmaker.

However, the company announced that by 2030 it now aims for between 90% to 100% of its cars sold to be fully electric or plug-in hybrid models, while up to 10% will allow for a limited number of mild hybrid models.

The target replaces a 2021 pledge for Volvo Cars' line-up to be fully electric by the end of the decade.

The move means Volvo Cars follows in the footsteps of other industry players in scaling back its EV ambitions. Germany-based carmakers Mercedes-Benz Group and Volkswagen have both previously announced a shift in their respective EV strategies.

"An electric car provides a superior driving experience and increases possibilities for using advanced technologies that improve the overall customer experience," Jim Rowan, CEO of Volvo Cars, said on Wednesday in the written statement.

"However, it is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds of adoption," he continued.

"We are pragmatic and flexible, while retaining an industry-leading position on electrification and sustainability."

Shares of Volvo Cars traded more than 6% lower on Wednesday.