Volvo Cars has announced exceptional financial and sales performance for the year 2024, marking the second consecutive year of record achievements. The company’s annual revenue surpassed SEK 400 billion, reaching an all-time high of SEK 400.2 billion. Global sales reached a record 763,389 cars, reflecting an 8% increase compared to the previous year.
Significant Growth in Electric Vehicle Sales
A pivotal factor in Volvo’s success was the substantial growth in electric vehicle (EV) sales. The company experienced a 54% year-over-year increase in fully electric car sales, delivering 175,194 units in 2024. These EVs accounted for 23% of Volvo’s total global sales, positioning the company as a leader among legacy premium car manufacturers in electrification efforts.
Financial Highlights and Profitability
Volvo Cars reported a core operating profit of SEK 27 billion for 2024, a 6% increase from the previous year. This growth resulted in an improved core operating margin of 6.8%, up from 6.4% in 2023. The robust financial performance underscores the company’s effective strategy in navigating the competitive automotive market.
December Sales Performance
In December 2024, Volvo Cars sold 73,804 cars globally, a 3% decrease compared to December 2023. However, sales of electrified vehicles, including fully electric and plug-in hybrid models, increased by 20% year-over-year, highlighting the growing consumer shift towards sustainable mobility options.
Strategic Focus on Electrification
The significant increase in EV sales aligns with Volvo’s strategic focus on electrification. The company has been proactive in expanding its electric vehicle lineup and enhancing related technologies, aiming to meet the evolving demands of environmentally conscious consumers.
Outlook for 2025
Looking ahead, Volvo Cars is committed to sustaining its growth trajectory by continuing to innovate in the electric vehicle sector. The company plans to introduce new models and technologies in 2025, further solidifying its position in the global automotive industry.
