Hybrids and BEVs Drive Record Sales for Volvo Cars

Hybrid and battery-electric vehicle powertrain sales account for the bulk of Volvo Cars’ 12% year-on-year hike in global vehicle sales for the first quarter of 2024.

In line with BEV sales data from other sources, the automaker says plug-in hybrids and BEVs combined to account for 41% of quarterly sales,  while BEV sales rose 21% versus the 18% recorded for the same period in 2023.

Overall, the automaker recorded 182,687 cars sold globally while marking a new all-time sales record for a single month in March. It reports a strong performance in both the European and U.S. markets plus record first-quarter sales in 11 of its markets, including Germany, France, the Netherlands, Canada and Turkey.

Volvo says this suggests it is on track to achieve its annual sales target of at least 15% growth in 2024 with its balanced premium powertrain options. In Europe, it claims to be the No.3 BEV seller, while the XC60 PHEV was the best-selling plug-in hybrid in the region during the first quarter.

First-quarter gross margins on the company’s BEVs improved to 16% from 7% in the same quarter last year, the automaker says, promising to continue to work to further close the margin gap with the more-profitable combustion engine-powered cars.

The sales performance sees an operating profit (EBIT) excluding joint ventures and associates of SEK 6.8 billion ($627 million) for the first quarter, an increase of 8% versus the same period in 2023.

Volvo Cars CEO Jim Rowan says: “We reported double-digit retail sales growth during the quarter, set a new all-time sales record for a single month in March and continued to ramp up production and customer deliveries of the EX30.”