Volvo Cars Sees Shift Towards Electrification Despite December Sales Dip
The Swedish automaker Volvo Cars reported a 3% year-over-year decline in sales to 73,804 cars in December, primarily due to a decrease in hybrid vehicle sales. However, the company saw a significant 20% increase in electrified cars, including fully electric and plug-in hybrid models, during the same period.
Electrification Efforts Pay Off
Despite the December slump, Volvo Cars’ overall sales for 2024 rose by 8% compared to 2023, reaching a total of 763,389 cars. This growth was largely driven by a remarkable 54% surge in fully electric models. In fact, electric cars accounted for 23% of all Volvo cars sold globally in 2024, up from 16% in 2023.
Mild Hybrids Take a Hit
On the other hand, sales of mild hybrids, which rely solely on internal combustion engines, fell by 16% year-over-year in December. This decline highlights the shift towards more environmentally friendly options, as consumers increasingly opt for fully electric or plug-in hybrid vehicles.
Investors Respond Positively
Following the release of these figures, Volvo Cars’ shares rose 1.8% by 0819 GMT, outperforming the 0.9% gain in Stockholm’s benchmark index. This positive response from investors suggests confidence in the company’s electrification strategy and its potential for long-term growth.
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