Sales of fully electric cars increased 12 per cent during the quarter which resulted in an increased market share in the premium fully electric segment in the Europe and RoW region. Positive momentum in fully electric car sales helped end the first quarter on a positive note, despite tough market conditions.

Fully electric cars comprised 23.7 per cent of all cars sold, while the share of plug-in hybrid models accounted for 23.6 per cent. Overall, electrified models represented 47.3 per cent of all cars sold during the quarter, highest among legacy premium carmakers.

Sales figures from the first quarter continue to illustrate the persistent challenges facing the automotive industry globally, in the form of continued pricing pressure, uncertain geopolitics, tariffs and adverse regulatory changes.

"Fully electric cars remain the key growth driver for Volvo Cars and for the industry, reinforcing our strategy to grow and emerge as a leader in the premium fully electric car segment," said Erik Severinson, Chief Commercial Officer.

"We ended the quarter on a positive note, with double digit growth in deliveries of fully electric cars in Europe and RoW, our largest region. In March, we marked our sixth consecutive month of growth in deliveries of our fully electric cars, even without the EX60. We are now gearing up for the start of production of the EX60 following the overwhelming customer response. The XC70 long-range plugin hybrid also continues to strengthen our position in China's rapidly growing new energy vehicle market. Deliveries in the US, however, remain impacted by weak customer sentiment and the phaseout of incentives impacting electrified products."

In Europe and Rest of the World, sales reached 95,335 cars during the first quarter, down by 2 per cent compared to the same period last year. However, sales of fully electric cars increased by 21 per cent, while overall sales of electrified models decreased by 2 per cent. The electrified models accounted for 57 per cent of all cars sold in the region.

Sales in the Americas region decreased by 28 per cent, totaling 29,651 cars as a result of weak customer sentiment, made worse by the ongoing geopolitical conflict in the Middle East. Deliveries of electrified models decreased by 30 per cent compared to the same period last year, due to the negative impact from the removal of subsidies on fully electric and plug-in hybrid cars.

Sales in the Greater China region stood at 28,330 cars, down by 17 per cent due to the competitive market, seasonal effects and the prolonged Chinese New Year holiday period. However, sales of electrified models increased by 116 per cent to 7,604 cars, on the back of a 146 per cent jump in deliveries of plug-in hybrids.