Volvo Cars experienced a 3% year-on-year decline in sales during December, with 73,804 cars sold, as the market for hybrid vehicles showed signs of cooling.
However, this dip was juxtaposed with a substantial 20% year-on-year increase in the sales of electrified vehicles, encompassing both fully electric and plug-in hybrid models.
This data reveals a significant shift in consumer preference toward cleaner, battery-powered vehicles.
Electrification gains momentum while traditional hybrids lag
While electrified car sales saw a significant boost, the sales of so-called mild hybrids, which rely solely on internal combustion engines, fell by 16%, according to the Sweden-based automaker’s statement.
This underscores the ongoing transition away from traditional combustion engine vehicles and towards more eco-friendly alternatives.
The rise in electrified vehicle sales demonstrates a clear trend within the automotive industry, as consumers increasingly opt for more sustainable options.
Strong full-year performance driven by EV sales
Despite the December sales dip, Volvo Cars, which is majority-owned by China’s Geely Holding, reported that its total sales for 2024 rose by 8% compared to 2023, reaching a total of 763,389 cars.
This overall increase was largely attributed to a remarkable 54% rise in the number of fully electric models sold throughout the year.
This surge in EV sales indicates the success of Volvo’s strategy to embrace the electric vehicle market, which is increasingly becoming a focus for all major car manufacturers globally.
Electric vehicles account for nearly a quarter of total sales
Sales of Volvo’s fully electric cars accounted for 23% of all Volvo cars sold globally during 2024, a substantial increase from the 16% recorded in 2023, the company stated.
This significant increase demonstrates the growing importance of electric vehicles within Volvo’s product lineup, and highlights their rising popularity among consumers.
The company’s stock responded positively to the news, rising 1.8% by 0819 GMT, exceeding a 0.9% rise in Stockholm’s benchmark index.
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