STOCKHOLM (Reuters) – Swedish carmaker Volvo Cars on Wednesday abandoned its goal of going all-electric by 2030 and now plans to offer some hybrid models by then.

Major automakers have seen a slowdown in demand for electric cars, linked in part to a lack of affordable models and the slow rollout of charging stations.

Volvo Cars shares fell by 5.4% on the Stockholm Stock Exchange on Wednesday.

In a statement, the manufacturer said it now aims to have 90% to 100% of cars sold by 2030 be fully electric or plug-in hybrid models, while up to 10% would be mild hybrids, in which electric power only supplements the combustion engine.

The group said in a separate statement that plug-in hybrid vehicles would be a key part of its future profit growth and that it would revamp its XC90 hybrid vehicle.

The growing demand for hybrid cars has led to a strategic shift among global automakers, who initially planned to phase out hybrid powertrains in favor of fully electric vehicles.

Volvo Cars, majority owned by China’s Geely Group, said it was adapting to market conditions and customer expectations.

“This is a pragmatic approach […] to help our customers move to full electrification,” Erik Severinsson, Volvo Cars’ chief product and strategy officer, told Reuters.

By 2025, Volvo Cars expects electrified cars – hybrids and electrics – to account for between 50% and 60% of its sales volumes. The previous target was for at least 50% electric vehicles and the rest hybrids.

The company also called for “stronger and more stable” government policies to support the electrification of the vehicle fleet.

(Reporting by Marie Mannes, Anna Ringstrom and Stine Jacobsen, by Elena Smirnova, edited by Blandine Hénault)

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