Volvo Cars achieved a second consecutive year of record sales in 2024, delivering 763,389 cars, an 8% increase over the previous year. Despite this success, the Swedish automaker is bracing for a “turbulent 2025” due to challenging market conditions.
In response, Volvo is updating its lineup with refreshed models and new additions to remain competitive. CEO Jim Rowan outlined the company’s upcoming plans during a conference following the full-year report, highlighting several key product launches for the year ahead.
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One of the major additions to Volvo’s portfolio is the EX30 Cross Country, a more rugged version of its smallest electric crossover, set to debut on February 10. The company is also preparing for the release of its first electric sedan, the ES90, this year.
Additionally, Volvo is planning to introduce a plug-in hybrid vehicle with an extended electric range for the Chinese market, while two existing models will undergo significant updates. The EX60, Volvo’s first electric model based on the SPA3 platform, won’t go on sale until 2026, but prototypes will be built and tested in 2025. The platform promises a “significant reduction on cost,” although it remains uncertain whether that will lead to lower prices for consumers.
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Rowan referred to the new EX60 as a “game changer” for Volvo, with plans for two additional models based on the SPA3 platform already in development. However, the company is not pivoting exclusively to electric vehicles. Volvo has abandoned its previous plan to go entirely electric by 2030, instead aiming for plug-in hybrid and electric models to account for 90-100% of its sales. The CEO also mentioned that mild-hybrid cars would remain part of the lineup in the years to come.
Despite its shift toward electrification, Volvo is not completely abandoning internal combustion engines (ICE). The company has committed to keeping the XC90 with gasoline engines in production for as long as there is demand. The XC90, which turns 10 this year, received its second facelift in 2024 and remains a key part of Volvo’s long-term offerings.
Volvo’s strong sales performance in 2024, with a 54% increase in zero-emission car deliveries, underscores the brand’s optimism for its EV future. EVs now represent 23% of total deliveries, with plug-in hybrids and electric models accounting for 46% of total shipments, placing Volvo ahead of many traditional luxury automakers in the electric vehicle market.