- Volvo was the luxury manufacturer with the biggest drop in EV sales in America last quarter.
- However, globally, EVs continue to make up more and more of the Swedish automaker’s sales.
- The company is in the process of rolling out two new EVs, the EX30 and EX90.
Volvo has ambitious plans to transition to all-electric vehicles by 2030, aiming for EVs to make up half of its global sales by 2025. However, 2024 has proven to be an abysmal year for its electric models in the States, with sales plummeting by a whopping 69 percent through April.
In the first four months of 2024, the automaker sold just 1,298 EVs to American buyers versus 4,138 the same period last year. This figure stands in contrast to the simultaneous 55 percent increase in sales of its plug-in hybrid models, totaling 10,124 units, and a 15 percent rise in overall sales from 36,094 in Q1 2023 to 41,555 in Q1 2024.
Read: Volvo’s New C40 Recharge RWD Starts At $53,600, XC40 Recharge RWD Is $52,450
In fact, according to Autonews, based on data from Cox Automotive, Volvo experienced the largest decline in EV sales among luxury brands in America last quarter. Some of this decline can be attributed to the automaker’s product offerings.
Currently, American shoppers have a limited selection of fully electric vehicles at Volvo dealerships: the XC40 Recharge and the C40 Recharge. Both are small crossovers that have garnered critical praise. However, they come with starting prices of $52,450 and $53,600, respectively before incentives.
Volvo USA Sales By Powertrain, April 2024
That’s significantly more than the Tesla Model Y, which can be had from $44,990 this week, before any incentives. The American EV has had its price changed more times that we can remember in recent months, often dropping to lower levels, something the Swedish automaker has refused to do.
The company’s refusal to engage in a price war has left dealers in the U.S. feeling frustrated. They’re grappling with the challenge of selling these expensive compact crossovers at a time when MSRPs are a significant concern for shoppers. On the other hand, this means that Volvo maintains a 16 percent gross margin on each example it sells.
Volvo’s Global Sales
Around the world, EVs accounted for 21 percent of the automaker’s sales in Q1, more than at any time in the last two years. However, sales of the XC40 and C40 Recharge experienced a global decline. The brand’s EV charts saw a boost from new additions to the lineup, such as the EX30 and the EX90, both of which are set to debut in the U.S. soon.
The EX90, being much larger in size, will surely cater more to American buyers’ preferences. However, its $76,695 price tag could still raise concerns among cost-conscious consumers. Winning over these shoppers will be crucial, and the EX30, starting at $34,950, may play a significant role in that effort.
Volvo US Sales by Model
