COPENHAGEN (Reuters) – Volvo Cars’ sales dropped 2% in February from a year earlier to 50,315 autos, the Sweden-based group claimed on Tuesday, indicating the timing of the Lunar New Year in China as the main explanation for the decrease.
Shares in Volvo Cars fell 3.5% by 0832 GMT versus a 0.3% decrease in Sweden’s benchmark index.
Volvo Cars, majority-owned by China’s Geely Holding, stated in a statement sales of completely electrical autos were up 14% and represented 22% of all sales around the world in the month.
The business in January stated it continued to be certain of “tremendous development” in the electric cars market. It expects EVs to represent half of its sales volume by mid-decade and to offer just EVs by 2030.
In China, sales were down 39% contrasted to the exact same month last year because of the timing of the Lunar New Year, which this year primarily occurred in February, according to Volvo Cars.
Sales in Europe expanded 26%, with sales of completely electrical cars and trucks raising 31% from a year back. At the same time, sales in the United States dropped 7%, dragged down by a 63% decrease in the sales of fully electric vehicles.
Some analysts have actually doubted Volvo’s heavy focus on electrical cars and trucks, saying the general EV market is underperforming and subject to strong competitors from Tesla.
Volvo in 2023 sold a document 709,000 vehicles, up 15% and elevating the group’s annual profits by 21% to 399 billion Swedish crowns. Totally electrical cars stood for 16% of its global sales.
Volvo Cars’ share price has actually risen by 10% year to day but is down 30% in the last year.