Volvo's U.S. EV Sales Continue to Grow in 2022
Updated on Apr 19, 2022 · 4 min read
Like most car companies, Volvo’s sales are slumping. But its plug-in models are bucking the trend. Even as overall units moved 16.5% slower in the first quarter of 2022 than a year ago, sales of the brand’s battery-electric vehicles (BEVs) were up by over 400%.
These percentages are a little deceiving—of the 20,700+ vehicles Volvo sold in the U.S. between January and March 2022, less than 2,000 had plug-in powertrains. But the trajectory has the Swedish brand feeling hopeful about its goal to transition completely to electric by 2030.
Volvo’s sales graph looks similar to many of its competitors. Many automakers with electric models are seeing EV sales improve as overall sales sputter. Jerry, your car insurance super app, took a closer look at this phenomenon.
Volvo’s US electric vehicles sales follow a nationwide trend
Are you tired of hearing about the supply chain yet? Well, too bad. It’s still causing all kinds of problems for the auto industry, and Volvo is no exception. The company saw a 16.5% decrease in sales in the first quarter (Q1) of 2022, a slightly sharper decline than the industry as a whole.
And yet, despite the microchip shortage and other issues hitting manufacturers, EV sales continue to trend upwards. Tech Crunch says Tesla saw sales rise by 87% in the U.S., and other EV-only brands like Karma, Lucid, and Rivian also showed improvements.
And Volvo wasn’t the only mainstream automaker to see their EV and overall sales moving in opposite directions. All-electric models from Ford, GM, Hyundai, and Kia began moving faster than in previous quarters as well.
Key reason for EV sales growth: more options
EVs still have a long way to go in order to catch up with gas powered cars. But one thing that will help them get there is variety. Q1 of 2022 shows just how true this is.
Volvo isn’t the best example of this. Its 2021 XC40 crossover might’ve been its first fully electric vehicle, but every car the company has released since 2019 has had an electric motor and its list of hybrids started years ago already.
But a look at its former subbrand Polestar displays the effect perfectly. Last year, the newly independent company had one model available in Q1 and sold 118 units. With just one more model on deck, the brand’s sales jumped to 1,180% to 1,510 units.
The industry overall also shows just what giving people options can do. New EVs from Hyundai and Kia have skyrocketed this year, helping the two brands brace the overall sales decline better than their rivals. Lucid and Rivian also benefitted by entering the race in late 2021.
Volvo EV ownership costs
Starting prices for Volvos have always landed at the lower end of the luxury market, and their electric models are no different. But because most EVs sit in this range, the electric CX40 and C40 actually fare pretty well.
At $51,700 and $58,750 respectively, both models sit under the average $65,000 starting price for an EV in the U.S. Car insurance for Volvos is lower than average as well, sitting at $1,521 annually, compared to the national average of $1,655 a year.
An electric powertrain might raise your premiums a bit, but you can save a lot on coverage by shopping for car insurance quotes online with Jerry.
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