EVs main driver of Volvo’s record 2024 sales

A 54% annual increase in EV sales was the main driver for Volvo Cars’ record-breaking revenue in 2024, at more than €36 billion, the Swedish carmaker said in its annual report.

Volvo sold a record 763,389 cars in 2024 – and 175,194 of them (23%) were fully electric. EV sales alone increased by 54% year on year, while overall vehicle sales were up 8% compared to 2023.

“The sales increase was primarily driven by the strong performance of our fully electric cars in Europe,” Volvo said in its 2024 annual and sustainability report, published today.

Sales of electrified vehicles including fully electric and plug-in hybrid models grew by 33% last year.

Within this, Volvo Cars experienced its second consecutive record-breaking year in terms of revenue, at more than SEK 400 billion (around €36.4 billion).

Volvo Cars’ sustainability targets

The car manufacturer previously had a target to sell only fully-electric cars by 2030 – but last year reduced this goal to 90%, with the potential to still sell a small number of plug-in hybrid cars by the end of the decade.

As a result, Volvo also lowered its GHG intensity reduction target for 2030, from 75% to 65-75%, from a 2018 baseline. For 2025, the company aims for a 30-35% reduction, instead of the previous aim of 40%.

As of 2024, electric and hybrid cars represented 46% of Volvo’s overall sales, and vehicle GHG intensity had been cut by 26%. Volvo is significantly ahead of the trend, since globally, battery-electric and plug-in hybrid vehicles only represent 23% of sales – though this proportion is growing.

Volvo Cars CEO sees 2025 as ‘turbulent’ and ‘pivotal year’

Despite positive results over the last two years, Volvo Cars’ CEO Jim Rowan warns in the 2024 annual report that 2025 will be more “turbulent”. 

Citing a “multitude of competitive and geopolitical challenges” – which have led the EU to relax its emissions reduction goals for car manufacturers – Rowan says the company anticipates that 2025 will be a challenging and transition year on the path to Volvo’s long-term growth ambitions. 

“The current turmoil in our industry is not only down to cyclical effects. As said, we are witnessing a fundamental rebalancing of the car industry and we stand on the precipice of profound change. This is the pivotal moment in time where the winners of next generation mobility are defined. What we do in the next two years will shape us for the next two decades,” he added.