AutoBeta(AutoBeta.net)07/18 Report--

On July 18, Volvo Group released its financial results for the second quarter of 2024. Data show that in the second quarter of 2024, Volvo's second-quarter revenue was 101.5 billion Swedish kronor, compared with 102.2 billion Swedish kronor, down from a year earlier; operating profit was 8.2 billion Swedish kronor (about 5.638 billion yuan), up 28% from a year earlier; core pre-tax profit margin was 8.1%, compared with 6.3% in the second quarter of 2023, both of which hit record highs. As for the reason for the decline in revenue in the second quarter, Volvo said it was due to a decline in contract manufacturing revenue and the normalization of sales to leasing companies.

In terms of sales, Volvo sold 205400 vehicles worldwide in the second quarter of 2024, up 15% from a year earlier. New energy vehicles account for 48%, and pure electric vehicles account for 26% of sales.

On the second-quarter sales performance, Jim Rowan, chief executive of Volvo, said: "Volvo cars had a strong performance in the second quarter of 2024, with basic profitability at an all-time high, indicating Volvo's ability to create value in a complex geopolitical and economic environment." In addition, "thanks to Volvo's balanced strategy, product mix and agility to respond decisively to headwinds, Volvo's core operating momentum remains solid."

Volvo car was born in 1927, is a well-known Swedish luxury car brand. Volvo launched its new pure electric small SUV--EX30 model on May 19, with a total of four models with a price range of 200800-255800 yuan. It is understood that Volvo EX30 based on SEA vast platform, the appearance of the continuation of the brand's iconic "Scandinavian design" style, basically similar to overseas models, power to provide single-motor, dual-motor version of the model choice. Volvo said that the EX30 is now popular with users in Europe and other markets and has become one of the top three best-selling electric vehicles in Europe. As a result, Volvo's gross profit margin has also risen to 22.8 per cent from 19.0 per cent last year.

In addition to the EX30 model, the Volvo Pure Electric SUV EX90 began production on June 5 at a plant outside Charleston, South Carolina.

Volvo pointed out in a press release that 2024 will be a landmark year for Volvo, and the EX30, EM90 and EX90 clearly indicate the direction of Volvo as it continues to move towards full electrification, and these electric vehicles, together with their plug-in and mild hybrids, provide Volvo with a balanced product portfolio. Become a clear bridge to the all-electric future.

It is worth mentioning that although Volvo is considered to be one of the first traditional luxury brands to start electrification, its performance in new energy models is still lack of highlights, especially in the Chinese market. According to the official website, Volvo's domestic models in China include S90, S60, XC60 and XC40, of which S90, S60 and XC60 launch plug-in hybrid models on the basis of fuel vehicles, while XC40 introduces pure electric models on the basis of fuel vehicles. Retail data show that in the first half of the year, the top three Volvo models were the XC60, S90 and S60, respectively, with cumulative sales of 32600, 16500 and 9100 respectively, while pure trams sold just over 100.

Volvo's sales target is planned to grow by 15% this year, but Volvo cut its full-year sales forecast because of macroeconomic and geopolitical uncertainty. Volvo said that without significant disruption, sales would grow by 12-15 per cent, meaning Volvo's full-year sales growth would be adjusted from 15 per cent to 12-15 per cent.

Volvo explained that European Commission tariffs on Chinese electric vehicles would affect EX30 electric SUV models after Volvo delayed the launch of the EX30 model in the US after the announcement. Demand is expected to be further weakened as the EU announced this month that it would impose high tariffs on imported electric cars made in China. However, Volvo noted that despite many challenges, Volvo is expected to grow further and expects cash flow to remain neutral for the whole of 2024 and 2025; Volvo is expected to achieve strong cash flow from 2026 as its investment will decline and begin to reap the long-term benefits of its strategy with higher income and profitability.

Volvo's global sales totaled 388100 vehicles in the first half of 2024, up 14 per cent from a year earlier, according to official figures.

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