Last Thursday, Volvo Cars reported record-breaking new vehicle sales of 763,000 units for 2024. The Swedish automaker cited surging electric vehicle (EV) sales as the primary catalyst for this milestone. EVs made up 23% of Volvo’s new car sales in 2024, a substantial jump from 16% in 2023, marking the highest EV share among major European automakers. Additionally, plug-in hybrid electric vehicles (PHEVs) accounted for 46% of sales, demonstrating the success of Volvo’s electrification strategy in the market.
Volvo Cars’ financial performance in 2024 was equally impressive, with operating profit (excluding joint ventures and affiliates) climbing 5% year-over-year to 27 billion SEK (2.474 billion USD). Revenue reached 400.2 billion SEK (36.66 billion USD), with both metrics hitting record highs for the second consecutive year. Industry analysts praised Volvo’s resilience in the face of a global automotive demand slump, attributing the robust performance to a well-balanced product portfolio and strong sales momentum. The company’s EBIT margin (earnings before interest and taxes as a percentage of revenue) was 6.8%, up 0.4 percentage points from the previous year.
Meanwhile, Volvo relocated part of the production of its best-selling electric model, the EX30, from China to Belgium to avoid potential additional tariffs from the European Union (EU) on Chinese-made EVs. However, industry analysts suggest that rising production costs could challenge Volvo’s future financial performance.
