Volvo Cars overall sales rise 1% in February, EV sales decline

Volvo Cars reported a 1% increase in total car sales for February 2025, selling 50,662 vehicles, according to a company statement released on Tuesday. However, the Swedish automaker, majority-owned by China’s Geely Holding, saw a decline in electric vehicle (EV) sales, which dropped by 15% compared to the previous year.

Decline in Electric Vehicle Sales

While Volvo’s overall sales showed modest growth, its fully electric vehicle sales fell by 15%, making up only 18% of the company’s total sales. When including plug-in hybrids, the total sales of electrified vehicles (EVs and plug-in hybrids combined) were down 3%, accounting for 43% of total sales.

Stock Performance and Market Outlook

Following the announcement, Volvo Cars’ stock price fell 1.7% by 0805 GMT, slightly underperforming the broader Stockholm market, which was down 1.4%. The company has previously warned of challenges in 2025, citing a competitive and turbulent market as key concerns.

Despite a slight increase in total sales, Volvo Cars faces a slowdown in EV adoption, reflecting market challenges and competition in the electric vehicle industry. With EV sales declining, Volvo may need to adjust its strategies to stay competitive in the evolving automotive landscape.

FAQ’s

Q1. How many cars did Volvo sell in February 2025?
Volvo Cars sold 50,662 vehicles in February 2025, marking a 1% increase from the previous year.

Q2. Why did Volvo’s EV sales drop in February?
Sales of fully electric vehicles dropped by 15% due to factors like increased market competition, changing consumer preferences, and potential supply chain challenges.

Q3. How much of Volvo’s total sales were electric vehicles?
Fully electric vehicles accounted for 18% of total sales, while electrified vehicles (including plug-in hybrids) made up 43% of total sales.

Q4. Did Volvo’s stock price change after the announcement?
Yes, Volvo’s stock fell by 1.7% following the report, slightly underperforming the 1.4% drop in the wider Stockholm market.

Q5. What challenges is Volvo Cars facing in 2025?
Volvo has warned of a turbulent and competitive market in 2025, with rising competition in the EV sector and uncertainties in global car sales.