Volvo Cars reported an 8% year-on-year increase in global car sales for 2024, reaching a total of 763,389 units. This growth was significantly driven by a 54% surge in sales of fully electric vehicles. However, the company experienced a slight decline in overall sales for December, down 3% to 73,804 cars compared to the same month in the previous year.
This December dip was primarily attributed to a decrease in sales of hybrid vehicles. While sales of fully electric and plug-in hybrid vehicles combined saw a 20% year-on-year increase in December, sales of mild hybrids, which rely solely on internal combustion engines, dropped by 16%. This shift in consumer preference towards fully electric models aligns with the broader automotive industry trend and Volvo Cars’ own electrification strategy. The company has stated its ambition to become a fully electric car maker by 2030.
The strong performance in fully electric vehicle sales throughout 2024 underscores Volvo Cars’ commitment to sustainable transportation and its successful transition towards electrification. Fully electric cars now represent a significant portion of Volvo’s global sales, accounting for 23% in 2024, a notable increase from 16% in 2023. This growth in the electric vehicle segment has more than compensated for the decline in mild hybrid sales, contributing to the overall positive sales figures for the year.
Majority-owned by China’s Geely Holding, Volvo Cars has been steadily expanding its electric vehicle lineup and investing heavily in research and development for electric vehicle technology. The company’s focus on electrification is not only driven by environmental concerns but also by increasing consumer demand for more sustainable and efficient vehicles. Volvo’s strategic shift towards electric vehicles positions the company for long-term growth in a rapidly evolving automotive market.
Following the release of the sales figures, Volvo Cars’ shares saw a positive response from investors, rising 1.8% in early trading on the Stockholm Stock Exchange, outperforming the benchmark index’s 0.9% gain. This positive market reaction suggests confidence in Volvo Cars’ future prospects and its strategic direction towards becoming a leading player in the electric vehicle market. The company’s continued investment in electric vehicle technology and its commitment to sustainability are expected to be key drivers of growth in the coming years.
Following the announcement, Volvo Cars’ stock price rose 1.8% on the Stockholm Stock Exchange, outperforming the benchmark index’s 0.9% gain. This positive market reaction reflects investor confidence in Volvo’s electrification strategy and its potential for future growth in the electric vehicle market. The company’s sustained focus on innovation and sustainability will be crucial for maintaining its competitive edge in the evolving automotive landscape.
