Volvo Cars reports Q3 2022 results with 7.4% of total electric sales

Volvo’s all-electric range accounted for 7.4% of total sales in the third quarter

Volvo Cars has announced its results for the third quarter of 2022, with demand solid despite current difficult situations, such as the supply crisis. In fact, the Swedish company reported that its sales were down 8% to 138,000 cars.

However, revenues increased by 30% to almost 7,270 million euros, obtaining a result (EBIT), excluding joint ventures and associates, of more than 320.8 million euros, with a profit margin of 4.4%. The company explains:

“Rising raw material costs, the spot purchase of semiconductors to cover a production shortfall and logistics costs contributed to a lower operating profit. EBIT margin, including joint ventures and associates, reached 2.6% during the period.”

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Regarding the electrified ‘Recharge’ range, Volvo Cars reported that it accounted for 25.1% of total sales in the third quarter, of which 7.4% were all-electric. increasing 87% year-on-year during the quarter, compared to Q3 2021.

September in particular was a big month, as the brand sold more than 6,000 all-electric models, representing more than 12% of total sales, compared to a 3.5% share in the same month last year. By 2022, the company expects the share of its all-electric cars to be heading towards a double-digit share.

Recall that the company pledged to reach a 50% share of all-electric cars by the middle of the decade, becoming anall-electric company by 2030. Volvo Cars president and CEO Jim Rowan said:

“We are on an exciting journey to transform our company to become an all-electric car brand by the end of this decade and achieve climate neutrality by 2040. We remain focused on that strategic direction.”

In fact, the brand recently previewed details of the Volvo EX90 electric SUV, which will be officially unveiled in November, expanding the brand’s 100% electric range, which currently has two electric models in its portfolio: Volvo C40 Recharge and Volvo XC40 Recharge.

Volvo has said it is exploring partnerships to secure greater access to affordable and sustainable raw materials, with a focus on critical materials such as lithium and nickel.

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Provided there are no further major supply chain disruptions, the company expects the improved production pace to continue in the fourth quarter and into 2023. For the second half of the year, Volvo Cars expects growth and, for the full year 2022, the company expects slightly lower wholesale volumes than in 2021.

In terms of CO2 reduction per vehicle, the company is on target. In the first nine months, CO2 emissions were 11.8% lower than in 2018, paving the way for a 40% reduction per car by 2025.

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