Between positive sales results and new plans for the near future, Volvo Cars achieved record results in the 2023 financial year and announced retail sales, revenues and operating profits at the highest level in its 97-year history.
The new record of 708,716 passenger cars sold enabled a revenue increase of 21% to SEK 399.3 billion for the full year 2023. Underlying operating profit of SEK 25.6 billion, excluding joint ventures and associated companies, instead represents an increase of 43% compared to 2022. The operating margin, excluding joint ventures and associated companies, was 6.4%, up from 5.4% in 2022.
"2023 represented a milestone in our transformation journey - declared CEO Jim Rowan - and it was a record year in many respects, with retail sales, revenues and profits at the highest levels in our company's 97-year history We have also made several significant strides in our ongoing transformation process, while navigating a complex external environment. In this way, we have laid a solid foundation for 2024 and the years ahead."
On the all-electric side, the automaker sold 113,419 all-electric vehicles in 2023, representing a 70% increase over 2022 and 16% of total global sales volume.
Compared to 2022, Volvo Cars has increased its share of the global electric market by 34%.
However, sales of electric vehicles are still concentrated on just two fully electric models and do not yet reflect the potential of the new EX30 compact SUV, the Ex90 large SUV and the Em90 minivan, which will enter circulation in 2024
. In the coming months, Volvo Cars will also update its plug-in hybrid models, which represent an important step towards complete electrification for the car manufacturer.
In the second half of 2023, Volvo Cars also quadrupled gross profit margins on its electric cars compared to the end of 2022, bringing them to 13%.
While high lithium prices impacted margins in 2022, the Swedish company recorded a sharp increase in the profitability of these cars starting from the second half of 2023, when lithium prices fell.
As for Polestar, Volvo Cars has instead announced that it will not provide further financing but will extend the repayment period of the existing convertible loan by 18 months, until the end of 2028. However, Geely will continue to guarantee Polestar full operational and financial support also in future.
The close operational collaboration between Volvo Cars and Polestar in the areas of R&D, production, after-sales and commercial is set to continue.
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