Volvo Cars abandons plan to exclusively sell electric vehicles by 2030.

• On Wednesday, Volvo Cars abandoned its plan to only sell electric vehicles, citing the need to be "pragmatic and flexible" due to changing market conditions and decreasing demand.
• Geely-owned carmaker aims for 90% to 100% of its cars sold to be fully electric or plug-in hybrid models by 2030, with up to 10% allowing for mild hybrid models.
• The target replaces a 2021 pledge for Volvo Cars' line-up to be fully electric by the end of the decade.

On Wednesday, the Swedish automaker abandoned its plan to only sell electric vehicles, stating the need to be "pragmatic and flexible" due to shifting market conditions and decreasing demand.

Geely Holding-owned Volvo Cars was among the first legacy carmakers to pledge a complete transition to EVs. The company aims to eventually become a fully electric car manufacturer.

The company has updated its goal for electric and hybrid cars by 2030. Now, it aims for 90% to 100% of its cars sold to be fully electric or plug-in hybrid models, with up to 10% allowing for mild hybrid models.

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

Other car companies, including Mercedes-Benz Group and Volkswagen, have previously altered their EV strategies, and now Volvo Cars is following suit.

On Wednesday, Volvo Cars CEO Jim Rowan stated that an electric car offers a superior driving experience and enhances the customer experience through the use of advanced technologies.

Nevertheless, it is evident that the shift to electrification will not be a smooth process, and customers and markets are adopting at varying speeds.

"We maintain a leading position on electrification and sustainability while being practical and adaptable."

Shares of Volvo Cars traded more than 4% lower on Wednesday.