New Volvo EX30 will make BIG PROFITS for Volvo

The newly-revealed electric Volvo EX30, despite its low starting price, will make Volvo better margins than many of its cars.

Just last week we saw the debut of the new Volvo EX30, a new small electric SUV from Volvo which promises to be affordable – at least in comparison to anything other premium car makers are offering.

So, you might have thought, the EX30 is going to see Volvo losing money thanks to the high production costs of EVs, just as Ford is with its EVs – expecting a £3 billion loss this year.

But, it seems, that’s far from the reality according to Volvo’s Chief Commercial Officer Björn Annwal – speaking to Automotive News – who said quite the opposite is true when asked about the profitability of the EX30.

In fact, Volvo is expecting to yield a gross margin of 15-20 per cent on the EX30 despite its starting price of £33,795 and top-priced 4WD version good for 422bhp and 0-62mph in 3.6 seconds at £40,995.

It seems the profitability of the EX30 is down to cost reductions, using an existing platform from Geely and being smart about which goodies to offer, and will bring prie parity with comparable ICE cars.

Sounds like a win-win.