Written by Cláudio Afonso | LinkedIn | X
Volvo Cars announced on Thursday a 15% rise in retail sales for the second quarter, reaching 205,400 units, largely propelled by the growing demand for electric vehicles (EVs). As of the time of writing, Volvo shares are trading 5.13% higher at SEK 285.10.
The company’s revenue stood at SEK 101.5 billion ($9.61b), and its EBIT surged by 60% to SEK 8.0 billion($0.757b), achieving an EBIT margin of 7.9%.
The CEO, Jim Rowan, noted the impact of recent tariff measures by U.S. authorities, highlighting the challenges these present. Additionally, potential tariffs from the EU Commission on EVs imported from China are expected to impact the sales of Volvo’s EX30 model.
“The recent introduction of tariff measures by authorities in the U.S. reflects some of these challenges. In the short term, potential tariffs from the EU Commission affecting EVs from China will affect the EX30. However, as we previously announced, we will start producing that car in our plant in Ghent, Belgium, next year, as part of our ‘Build where we sell’ strategy. We aim 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,” Rowan said.
Despite these headwinds, Volvo’s revenue was SEK 101.5 billion, slightly down from SEK 102.2 billion the previous year. This decline was attributed to lower contract manufacturing sales, sales channel mix, pricing adjustments, and deferred revenue from rental sales.
Rowan emphasized the relevance of the subcompact electric crossover EX30 saying it had “a strong start in Europe”.
“The EX30 was an important contributor to the sales performance during the second quarter. This small, fully electric SUV had a strong start in Europe and was among the top three most sold EVs in the region according to the latest available industry data,” he said.
Volvo‘s smallest model, has been experiencing significant setbacks as it recently became one of the first victims of the US tariff hike on China-made vehicles.
Initially delayed in the U.S. due to the new tariffs — causing the production to move from China to Belgium — the model is now facing additional problems as customers report a series of software issues.
Written by Cláudio Afonso | LinkedIn | X
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