Volvo Cars delivered a record-breaking first quarter, with operating profit skyrocketing 62% year-over-year to SEK 8.2 billion (€720 million), fueled by unprecedented demand for its electric vehicle lineup. The Swedish automaker’s bold electrification strategy is paying off, with EV sales now representing 48% of total deliveries – up from just 29% in Q1 2024.

Key Highlights:

• EV Sales Boom: 98,400 electric vehicles sold (+137% YoY)

• Margins Expand: Automotive gross margin reaches 21.3% (up from 18.7%)

• China Recovery: Sales up 42% in world’s largest auto market

Model Breakdown:

1. EX30: New entry-level EV accounts for 31% of Q1 volume

2. EX90: Flagship SUV achieves 28,000 pre-orders

3. EM90: Luxury MPV dominates China’s premium commercial segment

Strategic Moves:

• Opened first US battery plant in South Carolina

• Launched industry-first cobalt-free batteries

• Partnered with Northvolt on 50GWh Swedish gigafactory

Market Reaction:
Shares rose 7.3% in Stockholm trading, hitting a 52-week high.