Volvo Cars has reported an impressive operating profit (EBIT), excluding joint ventures and associates, of SEK (Swedish Krona) 8.2 billion for the second quarter of 2024. This figure represents the highest quarterly profit in the company’s history and marks a 28% increase compared to the same period in 2023.
Core EBIT Margin and Profitability
The core EBIT margin reached a record high of 8.1%, up from 6.3% last year. This improvement in profitability can be attributed to Volvo’s focus on pricing discipline, internal cost control, and sustained growth in sales.
Sales Growth and Electrification
Global retail sales for the quarter rose by 15% year-on-year to 205,400 cars, driven largely by the company’s electrified vehicle offerings. Sales of plug-in hybrids and electric cars increased by 43% compared to the same period last year. Notably, 48% of Volvo Cars’ global sales volume during the quarter consisted of plug-in hybrid (PHEV) and fully electric (EV) cars, with EVs alone accounting for 26% of sales.