The entry-level Volvo EX30 electric crossover is gaining sales momentum and is well on its way to becoming the best-selling EV in the Swedish automaker’s portfolio by the end of 2024.
In the first quarter of 2024, Volvo delivered 14,500 EX30 EVs globally, the company said during its Q1 financial presentation today. The lion’s share was achieved in March when 8,681 EX30s were delivered globally.
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EX30, the money maker
The Volvo EX30 reached a very respectable gross margin between 15% and 20% during the first quarter of 2024. Such high numbers are usually associated with larger, more expensive vehicles, so with the entry-level EX30, Volvo seems to be on a winning streak.
Despite the entry-level EV being the company’s most affordable model, starting at $34,950 in the United States, Volvo is reaping gross margins between 15% and 20%. The entire battery-electric vehicle (BEV) portfolio’s gross margin was 16% (including EX40 and EC40).
This is on par with Tesla and Rivian, which reported gross margins of 17.4% and 15%, respectively, in Q4 2023. However, the two American companies offer larger and more expensive models that have historically achieved larger gross margins.
By the end of 2025, Volvo wants to have 50% of sales represented by all-electric models, with the EX30, EX40, EC40, EX90 and EM90 charging away as Volvo’s players in the segment. Another, all-new EV will be introduced next year, according to the car company’s head honcho, Jim Rowan, but more details have not been revealed.
“We have a cycle plan that takes into account different parts of the world, the different models, shapes, sizes and price points, customer demographics and the change in customer sentiment. We put all of that thinking into a range plan or cycle plan strategy. We develop cars and then when the time is right, we announce those cars to the public. So that is a ‘wait and see’ question,” Rowan said.
Looking at the big picture, Volvo delivered one million all-electric vehicles globally through March 2024, a figure that’s bound to increase exponentially as the brand is working toward becoming an all-electric vehicle company by 2030.
The upmarket EX90 SUV will go into production in the second quarter, with deliveries set to begin in the second half of 2024, while the China-specific EM90 luxury minivan is already being built.
