Volvo Cars

Volvo Cars (STO: VOLCAR-B) is a premium automotive brand that produces a range of internal combustion engine (ICE) vehicles, plug-in hybrid vehicles (PHEV), and battery electric vehicles (BEV).

Headquartered in Gothenburg, Sweden, the company manufactures vehicles in Gothenburg (Sweden), Ghent (Belgium), Charleston (US) as well as Luqiao, Daqing, and Chengdu (China). The company also owns a considerable stake in the EV brand Polestar (48.3%). Volvo generated revenue of SEK 330.1 billion in 2022 (~USD 31 billion).

Volvo’s Non-BEV Vehicles category (~68% of total revenue) includes all vehicles that are not fully electric, including ICE vehicles and PHEVs. Volvo sold  409.8 thousand ICE units and 66.7 thousand PHEV units in 2022. The BEV category (~9%) consists of Volvo’s 100% electric models. Volvo sold 138.6 thousand BEV units in 2022. The Other Revenues category (~23%) includes income generated from subscriptions, leasing, rental businesses, sale of licenses, and emission credits.

Europe accounted for ~44% of Volvo’s total revenue in 2022, followed by China (~21%), the US (~19%), and Other Regions (16%). Volvo aims to increase its sales to 1.2 million cars (0.6 million in 2022) and achieve an 8%–10% EBIT margin by 2025 (9.7% in 2022). The company targets all-electric cars accounting for 50% of its global sales by 2025 and 100% by 2030 (from ~11% in 2022). The company plans to sell only fully electric cars and phase out ICE vehicles, including hybrids, starting in 2024. Volvo plans to become climate neutral by 2040.