Volvo Cars announced on October 26, 2023, that its Q3 operating profit, excluding joint ventures and associates, increased by approximately 75% to 6.1 billion SEK (approximately $677.6 million). The EBIT (operating) margin, excluding joint ventures and associates, rose 6.7% from 4.4% last year. The company added that it demonstrated strong sales and profit growth, thanks to cost savings in raw materials and logistics, along with robust underlying operating profits.
Sales volume in the third quarter increased by 22% compared to the same period last year, marking a 13-month consecutive rise.
During the quarter, Volvo’s share of battery electric vehicle sales was 13%, nearly double the same period in 2022, representing a 111% increase year-on-year. This highlights Volvo Cars’ successful progress in becoming one of the fastest transformations in the industry.
The launch of the EX30 has created new momentum and is expected to contribute to the goal of becoming a fully electric car company by 2030. Production of the EX30 began in the third quarter, with the first vehicle set to be delivered in the fourth quarter, and production and delivery are expected to ramp up in 2024.
Volvo has announced plans to expand production of the EX30 and begin production at its Ghent factory in Belgium from 2025.
Third-quarter production increased by 16%, and the profit margin was 19.6%, a 9% increase from last year. Falling lithium prices and the effect of electric vehicle price increases in the second quarter influenced this.
Volvo reported that the total CO2 emissions per model during the first nine months of this year were 19% lower than the 2018 benchmark, contributing to our mid-decade target of a 40% CO2 reduction per car.
Volvo’s growth is significant compared to many other companies, reducing or delaying their sales targets.
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