Volvo Cars reports that its gross profit margins on its electric cars increased fourfold during the second half of 2023, contributing to a record trading year for the company.
The improvement, to 13%, was versus the end of 2022 when high lithium prices heavily hampered EV profitability, but the company saw a clear uptick in the underlying profitability of these cars from the second half of 2023 as lower lithium prices and the effects of increased pricing materialised.
Volvo said while there is still a gap in gross margins on the EVs compared to some of its combustion engine (ICE) cars, this gap is closing.
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An award-winning journalist and editor, with two decades of experience covering the motor retail industry, and accredited by the Institute of Leadership and Management (ILM) plus the National Council for the Training of Journalist (NCTJ)
As editor of AM since 2016, Tim is responsible for its media content, planning and production across AM's multiple channels, including the website, digital reports, webinars, social media and the editorial content of AM's events, Automotive Management Live and the AM Awards. His focus is on interviewing senior leaders of franchised dealer groups and motor manufacturer national sales companies to examine latest developments in UK motor retail.
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