Volvo's Latest Financial Report Released! Operating Profit Exceeds Estimates

On April 17, the Volvo Group released its first-quarter financial report for 2024. The data shows that in the first quarter of 2024, Volvo's net sales were 131.2 billion Swedish kronor (about 440 billion Thai baht), basically the same as the same period last year, but exceeding the market estimate of 129.18 billion Swedish kronor; the adjusted operating profit was 18.16 billion Swedish kronor (about 60.9 billion Thai baht), exceeding the estimated 17.24 billion Swedish krona; the adjusted operating profit margin was 13.8 %.

In terms of sales, in the first quarter of 2024, Volvo's cumulative global sales were 182,687 units, a year-on-year increase of 12 %. Looking at the major markets, Volvo's cumulative sales in the European market in the first quarter were 89,670 units, a year-on-year increase of 23 %; the cumulative sales in the US market were 30,950 units, a year-on-year increase of 17 %; the cumulative sales in the Chinese market were 37,958 units, a year-on-year increase of 4 %.

Overall, Volvo Group's performance is acceptable. Volvo is considered one of the earliest traditional luxury brands to start electric transformation and is currently accelerating the push for electrification. On March 26, the last XC90 SUV from Volvo came off the assembly line at the Volvo Torslanda factory in Sweden. This car is the last one equipped with a diesel engine. This means Volvo formally says farewell to a 45-year history of diesel car production and steps into a new era of electrification.

However, Volvo officially stated that it will continue to produce cars with gasoline engines until 2030 when it will only produce electric vehicles. Before this, Volvo had put forward a comprehensive electrification strategy in 2017 and further implemented it in 2021 to clarify market planning.