Volvo Cars reported strong electric vehicle sales growth in the United States during the first quarter of 2025, even as global figures showed a sharp decline, reflecting diverging regional trends amid a broader industry shift toward electrification.
The Swedish automaker sold 2,706 all-electric vehicles in the U.S. between January and March, marking a 179% jump from the 970 units sold in the same period last year. While the absolute numbers remain modest, the growth offers a rare bright spot for Volvo’s electrification strategy, driven by models like the EX30, EX40, and EX90.
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Including both fully electric and plug-in hybrid models, Volvo sold 9,449 electrified vehicles in the U.S., a 17% year-over-year increase. Overall U.S. deliveries rose 8% in Q1, reaching 33,285 units.
However, global performance told a different story. Total worldwide sales fell 6% to 172,219 vehicles. Fully electric sales dropped 15% to 32,449 units, while plug-in hybrid sales rose 14% to 42,034 units. Mild-hybrid models, which include the company’s remaining petrol and diesel-powered lineup, declined 9% to 97,736 units.
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In Europe, all-electric vehicle sales fell by 29% compared to Q1 2024, while plug-in hybrid sales increased 18% to 27,802 units. The shift allowed PHEVs to overtake EVs in volume, with the electric lineup selling just 22,095 units. Total European sales dropped 8%.
China also saw a 12% decline in total deliveries, as full-electric sales dipped 15% and mild-hybrids fell 16%. Plug-in hybrids remained the outlier, rising 60% during the quarter.
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The uneven global performance comes on the heels of a record-breaking 2024 for Volvo, which posted strong profits despite weak EV uptake in the U.S. That trend appears to have reversed, with the American market now leading in electrified growth. The shift adds context to this week’s announcement that the company’s board has dismissed CEO Jim Rowan.
Volvo has not disclosed who will succeed Rowan, but analysts suggest the leadership change signals mounting pressure to recalibrate the automaker’s global EV strategy