Volvo Cars up 6% on record monthly sales despite China EV slowdown

Swedish carmaker Volvo Cars hit its highest level since November on Thursday, after the automaker reported record single-month sales for March and solid growth in electric vehicles in Europe.

Shares rose 6.2% as of 12:20 p.m. in London and hit their highest level since November 16, according to LSEG data.

The company, majority owned by Chinese automobile group Geely, sold 78,970 cars last month, an increase of 25% year-on-year. Total first quarter sales increased 12% annually to 182,687.

Volvo Cars said its new all-electric EX30 model had driven growth and that it would focus on accelerating sales of the vehicle in the coming months.

Sales of electric vehicles in Europe increased 22% in the quarter and 34% in March, roughly in line with overall sales growth in that market.

Sales of electric models in China, the largest electric vehicle market, fell 36% despite a 4% rise in overall sales.

U.S. performance has been mixed for electric vehicles, with hybrid vehicles growing 44% but sales of fully electric vehicles falling 65%. Overall sales growth was 17%.

“These figures reflect the strength of our strategy and the diversity of our products – offering fully electric cars alongside plug-in hybrids and mild hybrids in the right combination,” said Björn Annwall, deputy CEO of Volvo Cars, in a statement.

Sales of electric vehicles are closely watched by the industry, amid debate over whether ambitious forecasts for next-generation automobiles have been exaggerated.

In 2021, Volvo Cars announced plans to become a “fully electric car maker” by 2030, phasing out all non-electric and hybrid models. Last month, it announced it would dilute its stake in electric vehicle maker Polestar and “focus its resources on the next phase of its transformation.”

A number of automakers, including Ford Motor, Mercedes-Benz and Volkswagen, have scaled back their electric vehicle strategies over the past year as doubts grow about consumer appetite for fully electric models. electrical.