Volvo Cars has revealed the company’s performance of electric vehicles — plug-in hybrid (PHEV) and fully electric (EV) cars — during the second quarter of 2024.
Volvo Cars has sold 98,592 electric vehicles during April-June 2024. Volvo Cars said its electric vehicles business represents 48 percent of Volvo Cars’ sales volume during the quarter. EV-only share of sales rose to 26 percent, Volvo Cars said.
Volvo Cars’ total retail sales rose 15 percent to 205,400 cars. Volvo Cars said sales of electrified cars – both plug-in hybrids and electric cars – grew by 43 percent in the second quarter.
Volvo Cars said strong demand for the company’s electrified cars was demonstrated by the EX30 small SUV, which was among the top three best-selling EVs in Europe. Volvo Cars said the XC60 plug-in hybrid is the best-selling PHEV in Europe in recent months.
The EX30 is popular with customers in Europe and other markets. As a result, Volvo Cars has increased its gross margins to 22.8 percent from 19.0 percent last year. Gross margins on its EVs reached 20 percent in the period, demonstrating that Volvo Cars is making the transition towards electrification profitably.
Volvo Cars does not reveal the revenue from its EV business.
Volvo Cars reported revenue of SEK 101.5 billion for the second quarter, versus SEK 102.2 billion reported in the same period last year.
Volvo Cars has reported operating profit (EBIT), excluding joint ventures and associates, of SEK 8.2 billion (up 28 percent) for the second quarter of 2024.
Jim Rowan, chief executive of Volvo Cars, said: “Our core operational momentum remains on a firm footing, thanks to the strength of our balanced strategy, product portfolio and our agility in responding decisively to headwinds.”
Volvo Cars said potential tariffs from the EU commission affecting EVs from China will affect the EX30.
It will start producing the EX30 in its Ghent, Belgium plant next year, as part of its ‘Build where we sell’ strategy. The company aims to start production of the EX30 in Ghent during the first half of 2025, with volumes ramping up during the second half of that year.
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Volvo Cars expects to considerably increase the share of fully electric cars in 2024. Volvo Cars expects total retail sales to grow by 12-15 percent from the previous guidance of 15 percent.
Volvo Cars is blaming European tariffs on EVs made in China that will hit one of the Swedish automaker’s key electric models until it shifts production to Belgium, Reuters news report.
Earlier this month, the EU announced provisional tariffs of up to 37.6 percent on imports of EVs made in China, saying they benefited from unfair subsidies.
Volvo is majority-owned by China’s Geely and faces a 19.9 percent tariff on its Chinese-made fully-electric EX30.
Baburajan Kizhakedath