Volvo Cars posted a modest 1% increase in overall vehicle sales for February, reaching 50,662 units, but reported a decline in sales of its fully electric vehicles (EVs), the Sweden-based automaker said on Monday.
The company, majority-owned by China’s Geely Holding, stated that sales of fully electric models fell by 15% year-over-year, accounting for 18% of total sales during the month. Additionally, sales of electrified vehicles, including plug-in hybrid models, declined by 3%, representing 43% of overall deliveries. The drop in EV sales comes amid growing competition in the sector and evolving consumer demand.
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The company has previously cautioned about challenging market conditions ahead, warning of heightened competition and pricing pressures that could impact the auto industry in 2025.
Despite the decline in EV sales, Volvo has reaffirmed its long-term commitment to electrification. The company has set an ambitious goal of becoming a fully electric car brand by 2030, as part of its broader sustainability strategy. However, it faces hurdles such as fluctuating demand, supply chain constraints, and increased competition from both legacy automakers and new entrants in the EV space.
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Volvo’s latest sales report follows a period of adjustments within the global automotive sector, where manufacturers are reassessing their EV strategies due to changing market dynamics. Industry analysts note that consumer adoption of EVs remains influenced by factors such as charging infrastructure, government incentives, and battery costs.