Volvo says car sales jumped 15% in 2023
Volvo has revealed that it sold a whopping 708,716 vehicles in 2023, a 15% increase from the year before. This impressive growth is due to the high demand for electric vehicles (EVs) and a more stable supply chain. The company said, "The all-time-high sales record is a demonstration of Volvo Cars' strong electrified product portfolio in combination with a more stabilized supply chain."
Electric vehicle demand and regional sales performance
The demand for fully electric vehicles skyrocketed by 70% from 2022, playing a significant role in Volvo's record-breaking sales. In December alone, the growth rate was 4.6% compared to the same month in 2022, with Europe up 4%, China down 6%, and the United States up 23%. Interestingly, fully electric and hybrid cars made up 55% of all cars sold in Europe, which is Volvo's largest market.
Share price dip despite record sales
Despite the record sales, Volvo's share price dropped by 1.4% to 30.49 Swedish crowns on Friday, hitting an all-time low since its public listing in late 2021. The stock has faced challenges since November after Geely, Volvo Cars' majority owner, initiated a sale of 10 crore shares in the carmaker. Analysts have raised concerns about Volvo's heavy focus on electric cars, pointing to underperformance in the overall EV market and stiff competition from Tesla.
