Volvo needs to keep plug-in hybrids.

Volvo has pledged to sell only electric vehicles by 2030, but may continue to offer gas-powered vehicles beyond that date due to weaker-than-expected demand.

Automotive News (subscription required) reported Thursday that Volvo CEO Jim Rowan, in announcing the company's results for the quarter, said that 48-volt mild hybrids and plug-in hybrids are the ideal bridge for customers who are not ready to switch to EV technology, and Volvo has acknowledged that it will continue to invest in this technology, the report said. Volvo does not sell conventional gas-fueled hybrids in the U.S.

, which are supplemented by an unplugged battery and electric motor system. Automotive News also reported that Volvo will focus on selling plug-in hybrid vehicles alongside EVs over the next decade, according to a source familiar with the automaker's plans. The plug-in hybrids could be based on an updated version of the SPA platform that underpins popular Volvo models such as the XC60 and XC90, the sources said.

Volvo's parent company, Geely Automobile, partnered with the Renault Group earlier this year to form Horse Powertrain, a joint venture aimed at developing and marketing cutting-edge engine and hybrid technology. Volvo may also supply the company with components it no longer invests in. According to [Automotive, Volvo dealers will continue to sell plug-in hybrids beyond 2030.

“If we don't, we're dead,” one dealer source told the magazine.

“Volvo has pushed itself to the limit with this EV-only strategy.

Volvo will not be the only automaker to back down on its EV commitments. Mercedes-Benz announced in February that it expects to sell gasoline-powered vehicles after 2030. Similarly, Cadillac, which had targeted a fully electric vehicle lineup by 2030, said in May that it would likely sell gas-powered vehicles after that date.

Porsche also commented this week that it is no longer on track to meet its goal of having EV sales reach 80% of total sales by 2030. Porsche also confirmed that its top-selling Cayenne will still be sold with gas and plug-in hybrid powertrains a decade from now, even though the electric Cayenne will be available next year or the year after.