A Volvo EX30 totally electrical EV Automobile is displayed in the course of the The whole lot Electrical London 2024 at ExCel on March 28, 2024 in London, England.
John Keeble | Getty Pictures Information | Getty Pictures
Shares of Swedish automaker Volvo Vehicles fell greater than 6% in early commerce on Wednesday after a drop in first-quarter revenues.
Income got here in at 93.9 billion Swedish kronor ($8.65 billion) within the first three months of the 12 months, down 2% from the primary quarter 2023.
Firm shares have been 8% decrease by 10:15 a.m. London time.
It comes as first-quarter core working revenue rose 8% year-on-year to six.8 billion Swedish kronor. The determine excludes joint ventures and associates.
Retail gross sales additionally rose 12% year-on-year to 182,687 automobiles, after a brand new all-time month-to-month gross sales document in March.
Volvo CEO Jim Rowan stated that whereas the gross sales development was broad-based, the corporate’s deal with premium autos had left it much less uncovered to elevated competitors and weaker mass market shopper spending.
“I feel it is as a result of we play into that premium market sector that we’re a bit bit extra protected,” he informed CNBC’s “Squawk Field.”
The automaker stated the outcomes confirmed it was “on observe” towards its goal of at the least 15% annual gross sales quantity development.
“We have now had a powerful begin to the 12 months, with our first quarter outcomes laying a stable basis for the 12 months forward,” Rowan stated in an announcement.
The expansion included a modest uptick in electrical autos gross sales, as the corporate has doubled down on the class. EV gross margins rose to 16% within the first quarter from 7% the 12 months prior.
Rowan stated it was one of many few corporations that may boast these ranges of margins within the EV vary.
“I feel we’re a bit bit forward of at the least a few of our rivals, and we plan to remain that means,” he stated.
“Our focus is just not solely on delivering the very best EVs with the most recent applied sciences, however to take action with stable margins,” Rowan stated.
Wanting forward, Volvo Vehicles stated it expects an extra rise in 2024 retail gross sales in comparison with the earlier 12 months, with the share of totally electrical autos forecast to extend “significantly.”
Competitors is heating up within the EV market, with Chinese language automakers seen ramping up manufacturing of lower-cost electrical autos. Beijing has denied claims from Washington and the EU that its producers are undercutting worldwide competitors.
Rowan stated that Volvo had not seen an influence from overcapacity issues, noting that it was concentrating on high-end EV gross sales in China.
“We have entered the China market on the premium sector,” he stated. “The place there’s mass competitors within the mass market in EV, we do not play in that area.”
