Volvo Cars has announced its second consecutive year of record performance in 2024, achieving the highest full-year retail sales, revenue, and core operating profit in its 98-year history. Despite these achievements, the company predicts a challenging 2025 due to ongoing market uncertainties.
The company’s revenue surpassed SEK 400 billion for the first time, driven by a new all-time sales record of 763,389 cars. Core operating profit reached SEK 27 billion, a 6% increase from 2023, and the core operating margin improved to 6.8% from 6.4% in the previous year.
While the fourth quarter saw a write-down of SEK 1.7 billion related to assets in the NOVO joint venture, the company’s gross margin for the quarter was impacted by a one-time effect from the sale of on-balance sheet cars. Despite these challenges, Volvo Cars experienced a notable reduction in inventory, which further influenced margins. Volvo Cars’ cash flow improved significantly in the latter half of the year, with positive free cash flow of SEK 1.1 billion, thanks to disciplined cash management.
Jim Rowan, CEO of Volvo Cars, reflected on the year, stating, “2024 was a year of two halves. The first half saw strong double-digit growth, while the second half brought more challenges as demand slowed. Despite this, we made notable progress and are well-positioned for future success.”
The company outperformed many of its premium segment peers, particularly in volume growth, thanks to a well-balanced portfolio of electric, plug-in hybrid, and mild hybrid models. In 2024, Volvo sold 175,194 fully electric cars, a 54% increase from the previous year, accounting for 23% of total global sales. This helped Volvo surpass EU carbon targets, resulting in a surplus of carbon credits for 2025.
Looking ahead to 2025, Volvo anticipates a weaker market due to competitive pressures and geopolitical challenges. However, the company remains in a strong financial position, with solid liquidity built from two years of record sales and profits. In response to market conditions, Volvo plans to introduce five new or refreshed models in 2025 and focus on cost efficiency and inventory management.
Despite competitive pressures, Volvo maintains its long-term growth goals, including outpacing market growth between 2023 and 2026, achieving a core EBIT margin of 7-8%, and generating positive free cash flow by 2026. For 2025, Volvo expects a more challenging year, with potential impacts on volumes and profitability, especially as it ramps up production of new models like the EX90 and ES90.
Jim Rowan concluded, “2025 will be a transition year. The global automotive industry is facing significant uncertainties, and we, along with the rest of the sector, will be tested. We must remain disciplined and focused on the long-term while navigating this challenging environment.”
Founded in 1927, Volvo Cars has grown into one of the most recognized and respected automotive brands worldwide, with a presence in over 100 countries. The company is publicly traded on the Nasdaq Stockholm exchange under the ticker “VOLCAR B.” With a strong legacy of safety, innovation, and quality, Volvo Cars continues to redefine mobility for modern consumers.
Driven by its mission—”For life. To give people the freedom to move in a personal, sustainable, and safe way”—Volvo Cars is transitioning to a fully electric lineup. The company aims to achieve net-zero greenhouse gas emissions by 2040, reinforcing its commitment to sustainability and reducing its carbon footprint.
As of December 2024, Volvo Cars employed approximately 42,600 full-time staff. The company’s headquarters, along with its core product development, marketing, and administrative functions, are based in Gothenburg, Sweden. Volvo operates production facilities in Sweden, Belgium, the U.S., and China, with R&D and design centers in Gothenburg and Shanghai.
