Volvo’s Financial Renaissance: 2023 Sees Highest Profit Rise in Nearly a Century


Photo credit: Jonathan Weiss /

Photo credit: Jonathan Weiss /

Volvo Cars experienced a robust financial year in 2023, marked by a substantial increase in annual revenue and a notable rise in the sale of fully electric cars. The company’s financial success is highlighted by an increase in annual revenue to SEK 399.3 billion, up from SEK 330.1 billion in the previous year. This growth could be a part of Volvo’s expansion into EVs, even if that has come in fits and starts.

Surge in Electric Vehicle Sales

It appears that a big part of Volvo’s success in 2023 was the growth in sales of fully electric cars, which comprised 16 percent of total sales, a rise from 11 percent in 2022.

Fourth Quarter Financials of 2023

Steady Quarter-on-Quarter Growth

The fourth quarter of 2023 also mirrored the year’s positive trend, with revenues rising to SEK 109.4 billion from SEK 105.2 billion in the same quarter of the previous year. However, the share of fully electric car sales in Q4 2023 slightly decreased to 16 percent from 18 percent from the same quarter a year before.

Strategic Corporate Developments

Realignment and Collaboration

In a strategic move, Volvo Cars is considering a change in its stake of Polestar, which might result in Geely Sweden Holdings becoming a major shareholder. Even if this change is made, Volvo Cars will continue to support Polestar by extending the repayment period of an existing convertible loan without additional funding. The two companies will maintain their collaboration in R&D, manufacturing, and after-sales services.

2023 Performance Highlights

Record Sales and Profit Increase

2023 was a big year for Volvo, with the company selling a record 708,716 cars. The operating profit, excluding joint ventures and associates, reached SEK 25.6 billion, a 43 percent increase from the previous year.

Electrification and Product Expansion

Volvo Cars sold 113,419 fully electric cars in 2023, a 70 percent increase from the previous year. There are more EVs on the way with upcoming models like the EX30, EX90, and EM90.

Volvo Cars’ Future Outlook

Upcoming Product Launches and Business Strategy

In 2024, Volvo plans to introduce new models such as the EX30 small SUV, the EX90 flagship SUV, and the fully electric EM90 MPV.

Investment and Financial Strategy

Like most automakers, Volvo is promising to have more EVs on sale.

Polestar’s Strategic Direction

Polestar, has its own plans for new model launches and a revised business plan, but will continue to partner with Volvo Cars’.

This article was co-written using AI and was then heavily edited and optimized by our editorial team.

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