Volvo Cars revises margin and revenue targets, focuses on electric and plug-in hybrids.

From CNBC: 2024-09-05 08:25:59

Volvo Cars has revised its margin and revenue targets, no longer aiming for 100% EV sales by 2030. They now target a 7-8% EBIT margin by 2026 due to global trade complexity and seek to outgrow the premium car market until 2026. Shares rose 3.2% as they focus on electric and plug-in hybrid models.

The automaker faced trade disputes and tariffs, influencing its decision to modify its sales target to include mild hybrids. Consumer demand, charging infrastructure rollout delays, government incentives withdrawal, and tariff uncertainties led to this change. Volvo remains committed to full EV sales when market conditions are suitable.

Volvo Cars partners with Nvidia to develop advanced driving assistance and autonomous driving features, aiming to reduce EV manufacturing costs with a “single technology stack.” August 2024 sales figures showed a 3% global increase year-on-year, with 47% coming from fully-electric and plug-in hybrids. China sales dropped 23% while Europe saw a 32% surge.

In July, Volvo Cars reported a record quarterly operating profit of 8.2 billion Swedish kronor. The automaker faces EV transition challenges amidst underwhelming demand, infrastructure concerns, and range anxiety. Volvo aims to align future sales targets with market conditions, shifting focus to electric and plug-in hybrid models amidst ongoing industry challenges.



Read more at CNBC:: Volvo Cars cuts margin aims after ditching electric vehicle target