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Volvo's pure electric sales rose by 11%

 Dur­ing 2021, about 4 per cent of Volvo Cars’ sales were bat­tery-only mod­els. This rose to 11 per cent

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dur­ing 2022 and was as high as 20 per cent in Decem­ber. Rowan said he expec­ted lith­ium prices to drop this year, and Volvo might cut prices in response. A significant drop in lith­ium prices would « us the oppor­tun­ity to make that decision», he said.

However, «we don’t see the need» to cut prices, he said, because of the volume of EV orders Volvo Cars had on its books. Moreover, a com­bin­a­tion of rising raw mater­ial chip prices plus sup­ply chain dis­rup­tion from lock­downs in China cut Volvo’s prof­it­ab­il­ity last year. Pre-tax profit for the com­pany, exclud­ing its engine busi­ness that is run in a joint ven­ture by Geely, fell 15.7 per cent to SKr17.9bn last year, giv­ing it an oper­at­ing mar­gin of 5.4 per cent. Rev­en­ues were 17 per cent higher at SKr330.1bn.

Volvo is aim­ing to increase mar­gins to 8-10 per cent by the middle of the dec­ade, as well as rais­ing sales to about 100,000 a month, or 1.2mn a year. Rowan said both sales and mar­gin tar­gets were still achiev­able, cit­ing the com­pany’s plans to launch a new range of elec­tric vehicles that will take it into the small sport util­ity vehicle mar­ket, as well as an expec­ted fall in lith­ium prices.

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  1. Martin10 February 2023 at 13:29

    If or when lithium prices will drop (because they will eventually) Volvo should lower their prices and get more sales as a result. More and more people are looking to invest in such models of cars and a lowering of price would make this an even better deal.

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