Volvo Cars reports new sales record in 2023 and gets EIB loan

Volvo Cars set a new global sales record as the company reported full-year sales of 708 716 cars during 2023, an increase of 15% compared to the entire year of 2022. Volvo Cars will also get a €420 million loan from the European Investment Bank (EIB) to develop a new electric car platform.

Volvo Cars also saw a significant increase in sales for its electrified cars. Last year, Volvo Cars sold 113 419 fully electric vehicles, an increase of 70% compared to 2022, and 152 561 plug-in hybrid cars, which was a 10% increase compared to 2022. Sales of fully electric cars (BEVs) accounted for 16% of all Volvo cars sold globally during 2023.

Growth everywhere

European sales reached 294 794 cars during 2023, an increase of 19% compared to 2022. Volvo Cars’ line-up of Recharge cars with a fully electric or plug-in hybrid powertrain accounted for 59% of all the vehicles sold in Europe last year.

Volvo Cars’ US sales for 2023 amounted to 128 701 cars, up 26% compared to the entire year of 2022. The number of Recharge cars sold increased by 28% and accounted for 28% of all vehicles sold in the US during the year.

Sales in China grew 5% compared to 2022, resulting in 170 091 sold cars during 2023. Overall, sales of Recharge cars rose 26% during the January to December period.

For 2023, the Volvo XC60 was the top-selling model, with sales reaching 228 646 cars (2022: 195 338 cars), followed by the XC40, with total sales of 200 670 cars (2022: 169 206 cars), and XC90 at 107 549 cars (2022: 97 130 cars).

New EV platform with help from the EU

Europe’s Investment Bank (EIB) will also help Volvo to build electric cars. The two parties have signed a financing agreement to that end to decarbonize transport in the EU and help Volvo reach its goal of manufacturing EVs only by 2030.

The EIB funds will support the development of a new all-electric car platform, the necessary research and development, and help with the “roll-out of resource-efficient, advanced manufacturing technologies for electric cars.”

According to an EIB media statement, the project aims to finance “a just and swift transition to a net-zero economy, both in Europe and across the world”. It will also help advance EV technology, making it safer and more sustainable, reducing the weight of electric cars, and implementing faster charging technology.

Leading role

“Sweden can be proud of Volvo Cars’ leading role in making the automotive industry more sustainable. Making cars that run on electricity instead of fossil fuels is only one part of the puzzle,” said EIB Vice-President Thomas Östros.

“The industry itself is still very carbon-heavy, something that Volvo Cars is actively working on changing. As the EU climate bank, this is one of the many facets in the green transition we are financing, and we’re glad to partner with Volvo Cars to accelerate the change,” he added.

“Volvo Cars continues to work diligently toward the ambition of becoming a climate-neutral company by 2040,” CFO of Volvo Cars Johan Ekdahl commented. “One way we aim to do that is by eliminating tailpipe emissions from our model line-up and investing toward becoming a fully electric car company by 2030,” he added.

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