Despite delivering a higher percentage of electric cars during Q2 2023, Volvo said its margins on EVs fell due to higher lithium prices. However, that’s expected to change with the introduction of the Volvo EX30, its smallest and cheapest electric SUV.
After doubling EV sales in 2022 in a breakout year that included its highest revenue total of $32 billion, Volvo carried the momentum into the new year.
Through the first three months of the year, Volvo’s EV sales more than doubled again (+157%), with only two fully electric vehicles in its lineup – the XC40 and the C40 Recharge.
EV sales continued climbing, up another 88% in April and 196% in May compared to 2022. This past month, Volvo’s electric car sales more than quadrupled YOY, totaling 9,535.
Volvo’s sales of fully electric vehicles grew by 178% YOY in the second quarter, reaching 29,000 and accounting for 16% of its total share of cars sold. Despite more EVs sold, Volvo’s vehicle margins slipped due to higher lithium prices. Volvo says these cars were sourced during peak prices in late 2022.
Volvo EV sales share (Source: Volvo Cars)
According to Volvo, as it enters the second half of the year, this will change. The Swedish automaker will benefit from lower lithium prices and increased pricing on 2024 model-year EVs.
Meanwhile, Volvo is just getting started. The company recently launched two fully electric vehicles, its smallest (EX30) and largest (EX90) EVs so far, which it believes will boost sales even further.
Volvo EX90 (Source: Volvo)
After selling out for the model year, Volvo had to close orders for its flagship EX90 electric SUV in April. Despite this, production has been pushed back to the first half of 2024 to finalize software development.
Can the EX30 save Volvo’s EV margins?
Volvo revealed its smallest and cheapest EV, the EX30, last month, which is expected to be a game changer for the Swedish automaker.
Volvo EX30 reveal (Source: Volvo)
With a fun, zippy ride and starting price of around $35,000, Volvo is targeting a “completely different demographic” in younger buyers that it expects to expand rapidly in the next few years.
The automaker expects the EX30 will boost the company’s profitable growth, with expected gross margins in the 15-20% range.
Volvo’s EV margins in Q2 (Source: Volvo Cars)
Volvo’s EV gross margins (including sales of CO2 credits) fell from 8% last year to 3% in Q2. As you can see from the image above, although Volvo’s revenue per car remained somewhat stable, gross earnings fell significantly due to higher lithium prices.
The company says it’s “putting in place important building blocks for its next growth phase,” with more electric cars on the way, a battery plant under construction in Sweden, and a new EV factory in Slovakia.
Volvo aims for 50% of sales to be fully electric by 2025. By 2030, Volvo plans to become an electric-only car maker.
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Following approval from Transport Canada, EV startup Workhorse will be bringing the W56 and W750 model electric delivery vans to commercial truck dealers in Canada as early as this spring.
“This is a major step forward for Workhorse,” says Josh Anderson, Workhorse’s chief technology officer in a press statement. “Pre-clearance from Transport Canada opens up a large new market for our products throughout Canada, including with fleets that operate across borders in North America.”
Despite that uncertainty, Workhorse execs remain upbeat. “We’re excited that our electric step vans can now reach Canadian roads and highways, providing reliable, zero-emission solutions that customers can depend on,” added Anderson.
Canadian pricing has yet to be announced.
Electrek’s Take
FedEx electric delivery vehicle; via Workhorse.
There’s no other way to say it: the Trump/Musk co-presidency is disrupting a lot of companies’ plans – and that’s especially true across North American borders. But in all this chaos and turmoil there undoubtedly lies opportunity, and it will be interesting to see who ends up on top.
The new Liebherr S1 Vision 140-ton hauler is unlike any heavy haul truck currently on the market – primarily because the giant, self-propelled, single-axle autonomous bucket doesn’t look anything like any truck you’ve ever seen.
Liebherr says its latest heavy equipment concept was born from a desire to rethink truck design with a focus only on core functions. The resulting S1 Vision is primarily just a single axle with two powerful electric motors sending power to a pair of massive airless tires designed carry loads up to 131 tonnes (just over 140 tons).
The design enables rapid maintenance, as important components easily accessible for quick servicing. Wear parts can be replaced efficiently, and the electric drive significantly reduces maintenance work. This helps to minimise downtimes and increases operational efficiency.
LIEBHERR
Because of its versatility, durability, and ability to perform zero-turn maneuvers that other equipment simply can’t, the Liebherr S1 Vision can be adapted for various applications, including earthmoving, mining, and even agriculture. There’s also a nonzero chance of this technology finding applications supporting other on-site equipment through charging or fuel delivery.
The S1 accomplishes that trick safely with the help of an automatic load leveling system that ensures maximum stability, even on bumpy or rough terrain. The company says this technology significantly reduces the risk of tipping while providing smooth and secure operation across various environments.
The HD arm of Hyundai has just released the first official images of the new, battery-electric HX19e mini excavator – the first ever production electric excavator from the global South Korean manufacturer.
The HX19e will be the first all-electric asset to enter series production at Hyundai Construction Equipment, with manufacturing set to begin this April.
The new HX19e will be offered with either a 32 kWh or 40 kWh li-ion battery pack – which, according to Hyundai, is nearly double the capacity offered by its nearest competitor (pretty sure that’s not correct –Ed.). The 40kWh battery allows for up to 6 hours and 40 minutes of continuous operation between charges, with a break time top-up on delivering full shift usability.
Those batteries send power to a 13 kW (17.5 hp) electric motor that drives an open-center hydraulic system. Hyundai claims the system delivers job site performance that is at least equal to, if not better than, that of its diesel-powered HX19A mini excavator.
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To that end, the Hyundai XH19e offers the same 16 kN bucket breakout force and a slightly higher 9.4 kN (just over 2100 lb-ft) dipper arm breakout force. The maximum digging depth is 7.6 feet, and the maximum digging reach is 12.9 feet. Hyundai will offer the new electric excavator with just four selectable options:
enclosed cab vs. open canopy
32 or 40 kWh battery capacity
All HX19es will ship with a high standard specification that includes safety valves on the main boom, dipper arm, and dozer blade hydraulic cylinders, as well as two-way auxiliary hydraulic piping allows the machine to be used with a range of commercially available implements. The hydraulics needed to operate a quick coupler, LED booms lights, rotating beacons, an MP3 radio with USB connectivity, and an operator’s seat with mechanical suspension are also standard.
HX19e electric mini excavator; via Hyundai Construction Equipment.
The ability to operate indoors, underground, or in environments like zoos and hospitals were keeping noise levels down is of critical importance to the success of an operation makes electric equipment assets like these coming from Hyundai a must-have for fleet operators and construction crews that hope to remain competitive in the face of ever-increasing noise regulations. The fact that these are cleaner, safer, and cheaper to operate is just icing on that cake.