Volvo records record sales with demand growing 15% in 2023

Cars – Volvo Cars has reported the highest number of vehicles sold in 2023. It stabilized demand and supply chains for electric vehicles.

Volvo said annual global sales rose 15 percent to 708,716 thousand cars, with demand for electric cars particularly good. It is expected to grow by 70 percent by 2022. The automaker's best-selling model last year was the XC60.

“The availability is testament to Volvo's strong electric product portfolio and a more sustainable supply chain,” the company said.

Volvo's growth rate in December reached 4.6 percent compared to the same month in 2022. It increased by 4 percent in Europe, decreased by 6 percent in China and 23 percent in the United States.

Volvo CEO Jim Rowan said last month that the keys to this year's sales success were Volvo's strong bookings. In addition to having a global production network that is no longer interrupted by crises such as shutdowns due to the coronavirus (COVID-19) and chips.

Despite the results, Volvo's growth rate slowed at the end of the year and its share price fell 1.4 percent to $2.98 in early trading. That's an all-time low for the company, which went public in late 2021. The stock has been under pressure since November after Geely's owner sold 100 million shares in the automaker.

Analysts have questioned Volvo's increased focus on electric vehicles, arguing that the overall electric vehicle market is underperforming and subject to strong competition from Tesla. Electric and hybrid cars accounted for 55 percent of all cars sold in Europe in December, the company's biggest market, Volvo said. The company is scheduled to announce its October and December earnings and full-year earnings in February.