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Volvo Cars reports slight sales increase amid market uncertainty

Published 10/02/2024, 03:14 AM
Updated 10/02/2024, 05:20 AM
© Reuters. FILE PHOTO: A Volvo logo is pictured in Brussels, Belgium March 4, 2024. REUTERS/Yves Herman/File Photo

COPENHAGEN (Reuters) -Volvo Cars' sales rose by 1% year-on-year in September to 62,458 cars, the Sweden-based automaker said on Wednesday amid a volatile and uncertain market.

Volvo (OTC:VLVLY) Cars, which is majority-owned by China's Geely Holding, said in a statement that total sales in Europe, the biggest market for Volvo Cars, were up 23%, while sales in the United States and China fell by 22% and 16%, respectively.

"The overall market picture remains volatile and uncertain, but we are encouraged by a solid performance in Europe, especially for our electrified car portfolio," deputy CEO and Chief Commercial Officer Bjorn Annwall said in the statement.

Sales of fully electric and plug-in hybrid models were up 43% and accounted for 48% of all cars sold during September, while the share of fully electric cars alone accounted for around a quarter of cars sold during the month.

© Reuters. FILE PHOTO: An EV charger next to a Volvo car at the Canadian International Auto Show in Toronto, Ontario, Canada February 15, 2024. REUTERS/Cole Burston/File Photo

Shares in the company fell 2.4% by 0731 GMT, underperforming Stockholm's benchmark stock market index, which traded up 0.2%.

The company last month abandoned its EV-only target by 2030 and slashed its margin and revenue ambitions, citing the impact of tariffs and a decrease in demand for electric vehicles.

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