Volvo’s low-cost EX30 EV is already living up to its promise

Despite its compact size, Volvo’s low-cost EX30 is already making a big impact. After launching just months ago, the new Volvo EX30 is already living up to its promise of delivering profitable growth.

Volvo’s low-cost EX30 is already making an impact

“We have had a strong start to the year, with our first quarter results laying a solid foundation for the year ahead,” Volvo CEO Jim Rowan said Wednesday.

Volvo set a new global sales record in the first quarter of 2024, fueled by growing demand for its fully electric vehicles.

After being one of the first legacy automakers to commit to an all-electric future, the results speak for themselves.

In the first quarter, Volvo had a 100% electrified (including PHEVs) sales share in 18 markets, up from 15 in Q4. Fully electric vehicles accounted for over 40% of sales share in 19 markets, up from 13 in Q4.

Volvo’s new fully electric small SUV, the EX30, contributed to the sales growth, according to Björn Annwall, Volvo Cars’ chief commercial officer & deputy CEO.

The EX30 helped push Volvo’s EV share of sales to a record 21% in Q1 2024. Volvo sold 14,500 EX30 models in the first three months of the year, topping the EC40 (6,000) while closing in on the EX40 (17,400).

Delivering profitable growth

Volvo set a new all-time sales record in March as it ramps up EX30 deliveries. Perhaps, more importantly, its new electric SUV is helping improve margins.

Volvo’s EV margins improved to 16%, up from 7% a year ago and 13% in Q4. The EX30 “has lived up to its promise of being a profitable growth driver” in just a few months since launching.

In the first three months of 2024, “thousands of customers across Europe got behind the wheel of an EX30,” as Volvo prepares to expand deliveries in key markets like the US, China, Canada, and South Korea.

The EX30 will be sold in over 90 countries by the end of the year. With an expanding EV lineup, Volvo expects strong demand in 2024.

Volvo began production of its first electric minivan, the EM90, for China, with deliveries kicking off in March. In addition, Volvo plans to start building its three-row EX90 electric SUV in the first half of the year.

Volvo’s electric vehicle lineup will include the EX30, EX40, EC40, EM90, and EX90. With a balanced portfolio of electrified models, the brand expects to navigate industry headwinds.

With three new electric models in key segments, Volvo expects demand to “remain robust” over the next few quarters. Volvo expects full-year sales growth of at least 15% in 2024.

Volvo believes revenues can reach SEK 550-600 billion ($50B to $55B) with an EBIT margin above 8% during 2026.

In the first quarter, revenue fell 2% to SEK 93.9 billion ($8.6B). Volvo said revenue was weighed down by contract manufacturing. Meanwhile, operating profit (excluding JVs) rose 8% to SEK 6.8 billion ($625M).

Although overall operating income (including JVs) fell to SEK 4.7 billion ($435M) in Q1, Volvo said it was due to lower revenues at Polestar.

Electrek’s Take

As Electrek has said, Volvo’s early commitment to going all-electric continues to pay off. Not only did Volvo’s EV sales share reach 21% in Q1, but BEV margins are also improving.

With new electric models launching in key segments globally, Volvo expects strong demand in 2024. The automaker will be one to keep an eye on as the industry shifts to electric.