The Volvo Cars revealed on Thursday that it achieved an operating profit (EBIT) of 8.2 billion Swedish kronor (approximately €710 million) in the second quarter of 2024, which represents the highest value ever in a single quarter and corresponds to a 28% increase compared to the same period in 2023.
The corresponding operating profit margin reached a record of 8.1% compared to the 6.3% recorded last year. This improvement in profitability was the result of several factors, with emphasis on the company’s pricing discipline, internal cost control, and sustained sales growth.
During the second quarter, Volvo’s global sales recorded a 15% growth compared to the previous year, reaching 205,400 cars, benefiting from the performance of the brand’s electrified cars.
Out of the global sales volume of Volvo Cars, 48% consisted of plug-in hybrid and 100% electric cars, whose sales share increased to 26%. These numbers were contributed by the EX30, the brand’s compact SUV, which is among the top three best-selling models in the second quarter, while the Volvo XC60 PHEV continues to be the best-selling plug-in hybrid in Europe in recent months.
“We delivered a strong performance in the second quarter of 2024, with record profitability, demonstrating our ability to create value despite a complex geopolitical and economic environment. Our core operational momentum remains strong, thanks to the strength of our balanced strategy, our product portfolio, and our agile and decisive responsiveness to headwinds,” emphasized Jim Rowan, CEO of Volvo Cars.
The popularity of the EX30 in Europe and other markets demonstrates that the Swedish brand continues to transition to electrification profitably.
“Our brand and our values around safety and sustainability, as well as our unique technological approach, continue to be well-received by customers. During the year, we increased our market share in Europe to the highest level ever and also increased our share in the US, while simultaneously managing our market position in China,” concluded Jim Rowan.
