Shares of Volvo Cars up 6% to November highs on record sales month

Sweden's Volvo Cars on Thursday climbed to its highest level since November, after the automaker reported record single-month sales for March and solid electric vehicle growth in Europe.

The company's shares rose by 6.2% at 12:20 p.m. in London and hit their highest level since Nov. 16, according to LSEG data.

The company, which is majority-owned by Chinese autos group Geely, sold 78,970 cars last month, up 25% year on year. Total first-quarter sales were up 12% annually, to 182,687.

Volvo Cars said that its new all-electric EX30 model had boosted growth and that it would focus on ramping up sales of the vehicle in the coming months.

The company's year-on-year sales of electric vehicles in Europe were 22% higher in the quarter and up 34% year on year in March, roughly in line with overall sales growth in that market.

Sales of electric models to China, the largest EV market, dropped by 36% despite a 4% hike in overall sales.

U.S. performance was mixed for EVs, with 44% growth in hybrid vehicles but a 65% plunge in all-electric sales. Overall sales growth was 17%.

"These numbers reflect the strength of our strategy and product diversity - offering fully electric cars alongside plug-in hybrids and mild hybrids in the right mix," Volvo Cars' deputy CEO, Björn Annwall, said in a statement.

Electric vehicle sales are being closely watched by the industry, amid debate about whether ambitious forecasts for the next-generation autos has been overblown.

In 2021, Volvo Cars announced a plan to be a "fully electric car company" by 2030, phasing out all nonelectric models and hybrids. Last month it said it would dilute its stake in electric vehicle maker Polestar and "concentrate its resources on the next phase of its transformation."

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