Operating income for the period was up by 114.3% to SEK4.5 billion (US$403.33 million) while EBIT margin was 4.8%, up from 2.6% in the same period of 2022.
Regionally, the company saw retail sales in Europe increase by 34% to 61,800 units in the quarter. In China, the result was a decline of 4% to 45,400 units, while the U.S. was up by 50% to 32,400 units.
In other markets, growth was 25% to 27,900 units, with an increase in retail deliveries of 67% in South Korea and 34% in Canada, while Japan declined by 14% year-on-year.
By retail sales, the top market for Volvo is China by a significant margin, followed by the United States, the United Kingdom, Germany and Sweden.
Pure electric car sales made up 13% of sales for the quarter, increasing by 111% over the result in Q3 of 2022 as the company continues its electrification strategy. Volvo Cars aims to be a fully electric car company by 2030.
Production volumes in the period was up by 16% year-on-year, and Volvo noted that availability and visibility in the supply chain continue to improve. Its order book is stable and, in addition to lower raw material prices, costs for freight and other logistics have also eased. Volvo added that spot buy costs for key components such as semiconductors were also reduced.
The third quarter results put Volvo Cars on track for its outlook: solid double-digit growth in retail volumes for the full year and an increased share of fully electric cars versus 2022.
Jim Rowan, President and CEO of Volvo Cars, said: “Our operating performance is gathering momentum, while we continue to make steady progress on our transformation objectives. As such, the quarter developed as we planned and communicated, putting us in a good position to close out the year with solid double-digit growth in retail volumes and a considerably higher share of fully electric cars for the full year. At the same time, uncertainties remain on the horizon, and we continue to be watchful.”