Sweden’s Volvo Cars experienced a significant upswing on Thursday, reaching its highest level since November. This surge followed the company’s announcement of record-breaking sales for March and robust growth in electric vehicle (EV) sales across Europe.
In London, shares surged by 6.2% at 12:20 p.m., marking their peak since November 16, as reported by LSEG data.
The automaker, predominantly owned by the Chinese automotive conglomerate Geely, achieved impressive sales figures of 78,970 vehicles last month, indicating a 25% increase compared to the previous year. Also, the total sales for the first quarter reached 182,687 units, marking a 12% annual rise.
Volvo Cars attributed this growth partly to the success of its latest all-electric model, the EX30, and expressed its commitment to enhancing sales of this vehicle in the forthcoming months.
Notably, the sales of electric vehicles in Europe demonstrated a substantial increase of 22% for the quarter and a remarkable 34% surge year-on-year in March, aligning closely with the prevalent sales growth in the region.
Contrastingly, sales of electric models in China, the largest EV market, experienced a notable decline of 36%, despite a marginal 4% rise in general sales.
The performance of EVs in the United States showcased a mixed picture, with hybrid vehicle sales witnessing robust growth of 44%, while all-electric vehicle sales plummeted by 65%. Altogether, the sales growth stood at 17%.
Björn Annwall, Volvo Cars’ Deputy CEO, highlighted the strength of the company’s strategy and product diversity, emphasizing the offering of fully electric cars alongside plug-in hybrids and mild hybrids in the optimal mix.
The trajectory of electric vehicle sales is under intense scrutiny within the industry, amidst ongoing debates regarding the validity of ambitious forecasts for the next generation of automobiles.
In 2021, Volvo Cars revealed its ambitious plan to transition into a “fully electric car company” by 2030, signaling the gradual phasing out of all non-electric models and hybrids.
Additionally, the company announced its decision to reduce its stake in the electric vehicle manufacturer Polestar, redirecting its focus towards the subsequent phase of its transformation.
Several automotive giants, including Ford Motor, Mercedes-Benz, and Volkswagen, have recalibrated their EV strategies over the past year, reflecting growing uncertainty regarding consumer demand for all-electric models.
