Volvo shares climb as October sales rise 10%, driven by strong EV demand

Volvo (ST:VOLVb )(OTC:VLVLY ) Cars' shares rose on Monday as the automaker reported a 10% rise in global car sales for October 2023, reaching a total of 59,861 units. 

The increase was driven primarily by the company's electrified vehicle lineup, especially its fully electric models, which continue to perform well as the automotive industry shifts toward more sustainable transportation. 

In October alone, sales of fully electric vehicles surged by 29% compared to the same period last year, accounting for 18% of Volvo’s total sales, up from 12% in October 2022.

The growth momentum for Volvo was evident across several key regions. In Europe, sales rose by 13%, with 24,892 units sold during the month. 

The region remains a stronghold for Volvo's Recharge lineup—vehicles powered by fully electric or plug-in hybrid technology—which constituted 55% of all Volvo cars sold there in October. 

However, while Recharge models made up a big share of sales, there was a slight dip in plug-in hybrid sales compared to the previous year, which reflects a shift toward full electrification among European consumers.

In the United States, Volvo reported an even more substantial sales increase, with a 19% rise compared to October 2022, totaling 11,296 cars sold. Fully electric car sales in the U.S. saw impressive growth of 49%, suggesting a growing appetite for electric vehicles in the market. 

Recharge models as a whole made up 27% of Volvo’s U.S. sales. This is part of a broader trend in the U.S. market, where the demand for electric and hybrid options is becoming increasingly mainstream, and Volvo’s expansion in this sector is evidently meeting consumer interest.

China, on the other hand, presented a mixed picture. Sales in the region remained relatively flat at 15,041 units in October, mirroring the total from the same month last year.

Yet, even without overall growth, there was a 27% increase in sales of Recharge models in China, underscoring a gradual shift towards electrified models despite a stagnant market for other types of vehicles.

Among Volvo’s model lineup, the XC60 emerged as the top performer with 20,212 units sold globally, up from 17,531 in October 2022. 

It was followed by the XC40 with 17,022 units, also seeing an increase from 14,883 in 2022.

The XC90 rounded out the top three with 7,961 units sold, slightly up from 7,651 units in October 2022.

Source: Investing.com