Volvo Cars Faces Sales Slump Amid Market Challenges
Volvo Cars reported a 7% drop in sales from November to January, with figures highlighting a challenging market. Despite a 13% rise in fully electric model sales, overall electrified car sales, including plug-in hybrids, fell by 2%. Regulatory issues in the U.S. further compounded these difficulties.
Sweden-based Volvo Cars experienced a 7% decrease in sales during the November to January period compared to the same period last year, as announced on Wednesday.
Despite the drop, the company, largely owned by China's Geely Holding, noted a 13% increase in sales of fully electric vehicles, now comprising 24% of total sales. However, the broader category of electrified vehicles, which includes plug-in hybrids, saw a 2% decline.
Volvo Cars attributed the disappointing figures to a challenging global market, marked by ongoing pricing and competitive pressures. The situation was exacerbated by unfavorable regulatory changes in the U.S. Shares of Volvo Cars rose by 1.5% in early trading ahead of its scheduled 2025 earnings report release on Thursday.
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