On March 18, 2024, in Shanghai, China, a staff member of a Volvo car store introduced the Volvo xc60 and other models through a live broadcast.
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Volvo Cars On Thursday, the company scaled back its profit margin and revenue targets after announcing it would no longer target a target of 100% all-electric vehicle sales by 2030.
The Swedish carmaker, controlled by China’s Geely Holding, said it was now targeting an EBIT (earnings before interest and tax) margin target of 7-8% in 2026, down from “8%” due to “increased complexity” Above” especially when it comes to global trade and tariffs. “
The company added that it was now looking to “continue to outperform the premium car market by 2026” rather than stick to its previously announced revenue target of 500 billion Swedish kronor ($48.6 billion) to 600 billion Swedish kronor.
Evolving international trade disputes and tariffs have become a major headache for automakers as they navigate geopolitics between the European Union, China and the United States while also seeking a competitive edge in a market dominated by the shift to electric vehicles.
Volvo Cars shares were up 3.2% in afternoon trading after falling 10% so far this week.
The company is holding a capital markets day in Gothenburg, Sweden, to discuss product plans for the next few years, with a focus on electric and plug-in hybrid models. Volvo Cars has five all-electric models on the market and five more in development.
However, on Wednesday, the company revealed that it will no longer target 100% electric vehicle sales by 2030 – which it defines as “cars with wires” – but will instead seek a range of 90-100%, allowing Mild hybrid models continue to be sold. Mild hybrids have an internal combustion engine that utilizes some electrical assistance.
Volvo said consumer demand, slower-than-expected charging infrastructure construction, the removal of government incentives in some markets and uncertainty caused by new tariffs on electric vehicles in various markets were the reasons for the adjustment.
The company said it remains committed to pure electric sales in the long term “when market conditions are right.”
Many automakers have reported challenges related to the transition to electric vehicles, particularly from sluggish demand. Meanwhile, many consumers continue to complain about inadequate charging infrastructure and express concerns about range.
Volvo Cars also announced on Thursday that Expand partnerships with US chip giants NVIDIA Features it develops include advanced driver assistance and autonomous driving. It also said it would move to “Single Technology Stack” Because it hopes to reduce the manufacturing costs of electric vehicles.
Data released by Volvo Cars on Thursday showed that its global sales in August increased by 3% compared with the same period last year, driven by a 32% growth in Europe, while sales in China fell by 23%. In August 2024, fully electric and plug-in hybrid vehicles accounted for 25,028 of the 52,944 vehicle sales, accounting for 47%, with mild hybrids and internal combustion engine vehicles accounting for the remainder.
In July, the company reported a record quarterly operating profit of SEK 8.2 billion.
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