Volvo's Q3 performance reflects EV market growth

Volvo’s Q3 performance reflects EV market growth

Volvo Cars saw its electric vehicle share rise 111% YOY and aims to be a fully electric car company by 2030.

Volvo Cars reported a nearly 75% increase in operating profits, excluding joint ventures and associates, to SEK 6.1 bn (approx. $1.4 billion) for the third quarter of 2023. The EBIT (operating) margin excluding joint ventures and associates came in at 6.7%, compared to a margin of 4.4% in the same period last year. Volvo also saw its electric vehicle share almost double to 13% of total sales, rising 111% year-over-year. The upcoming launch of the new EX30, Volvo’s electric SUV, will further boost Volvo’s transition, the company said. The company aims to become a fully electric car company by 2030.

Volvo said customer response to models like the EX30 has been strong, and the SUV generated higher than expected pre-orders. EX30 production started in the third quarter and the first cars are expected to be delivered during Q4, with production and deliveries ramping up in earnest in 2024.

When Volvo Cars revealed the EX30 in June, it indicated it was exploring additional manufacturing locations globally and, recently, the company announced its plan to expand production of the EX30 and build it at the Ghent plant in Belgium starting in 2025.

According to Volvo, Q3 gross margin continued to improve and came in at 19.6%, boosted by improving margins on electric cars, which came in at 9% and was significantly up compared to the last quarter. The company said this underscores that lower lithium prices are starting to have an effect, and Volvo is realizing the effects of increased pricing on model year 2024 fully electric cars. Volvo said that, once the EX30 starts to be shipped to customers, it will further boost Volvo Cars’ profitable growth in fully electric cars.

With regard to its climate action plan, Volvo said it continues to make progress in its efforts to reduce its CO2 footprint per car. During the first nine months of the year, overall CO2 emissions per car were 19% lower compared with its 2018 benchmark.

Volvo said its position on EVs now will set the company on a path for a fast start in 2024, when it will bring three new fully electric models on the roads. Deliveries of the EX30 to customers are starting soon, and on November 12 it will reveal the Volvo EM90, the company’s first-ever premium multi-purpose vehicle (MPV).

You May Also Like

DTNA plans second life for commercial EV batteries

DTNA aims to achieve carbon neutrality for all new products and services from direct suppliers in Europe, the U.S., and Japan by 2039.

DTNA-battery-repurpose

Daimler Truck North America (DTNA) said it is committed to reducing its overall carbon footprint by integrating a comprehensive circular economy approach across its operations by emphasizing repairing, remanufacturing, repurposing and recycling lithium-ion battery materials used in all DTNA EVs.

Leveraging advanced technology, DTNA said it can discern when a lithium-ion battery no longer meets its standards required for vehicle use. This insight guides the decision on the optimal process to maximize materials for a second life, with repair taking precedence whenever possible, the company said.

Bendix highlights Global Scalable Brake Control at ACT Expo

Bendix said its Global Scalable Brake Control is compatible with single, dual and per-wheel-end electric and hybrid powertrains.

Bendix-GSBC
WattEV to add another 150+ EV trucks by end of year

The increase comes on the heels of WattEV’s expansion of its charging depots to five locations within the past month.

Watt EV Port
BAE Systems, Eaton test new electric drive system on commercial truck

BAE Systems’ electric motor and suite of modular power electronics are combined with Eaton’s MD 4-speed EV transmission.

BAE-systems-Eaton-testing
Volkswagen Group to inject up to $5B into Rivian, announces JV plans

The partnership’s goal is to create next generation software-defined vehicle (SDV) platforms to be used in both companies’ future EVs.

Rivian-Volkswagon-joint-venture
Other Posts
Is hydrogen key to restructuring aging utility grids?

In its market report, IDTechEx explores the challenges utility grids face amid vehicle electrification.

EV-electric-grid-1400
Report finds lack of deforestation policies in EV mineral supply chains

There was a distinct lack of transparency and disclosure practices to enable cross-checking and verification of data.

Deforestation-stock
Mack delivers LR Electric refuse truck to City of Portland, Maine

The Mack LR Electric offers a standard 376 kWh total battery capacity for 42% more energy and increased range between vehicle charges.

Mack-LR-Electric
Hitachi Astemo is developing semi-active suspension, steer-by-wire technologies for EVs

The company is also creating a 360-degree-camera that provides LiDAR-like results for autonomous vehicles.

Hitachi-Astemo-technology