Volvo Cars reported a nearly 75% increase in operating profits, excluding joint ventures and associates, to SEK 6.1 bn (approx. $1.4 billion) for the third quarter of 2023. The EBIT (operating) margin excluding joint ventures and associates came in at 6.7%, compared to a margin of 4.4% in the same period last year. Volvo also saw its electric vehicle share almost double to 13% of total sales, rising 111% year-over-year. The upcoming launch of the new EX30, Volvo’s electric SUV, will further boost Volvo’s transition, the company said. The company aims to become a fully electric car company by 2030.

Volvo said customer response to models like the EX30 has been strong, and the SUV generated higher than expected pre-orders. EX30 production started in the third quarter and the first cars are expected to be delivered during Q4, with production and deliveries ramping up in earnest in 2024.

When Volvo Cars revealed the EX30 in June, it indicated it was exploring additional manufacturing locations globally and, recently, the company announced its plan to expand production of the EX30 and build it at the Ghent plant in Belgium starting in 2025.

According to Volvo, Q3 gross margin continued to improve and came in at 19.6%, boosted by improving margins on electric cars, which came in at 9% and was significantly up compared to the last quarter. The company said this underscores that lower lithium prices are starting to have an effect, and Volvo is realizing the effects of increased pricing on model year 2024 fully electric cars. Volvo said that, once the EX30 starts to be shipped to customers, it will further boost Volvo Cars’ profitable growth in fully electric cars.

With regard to its climate action plan, Volvo said it continues to make progress in its efforts to reduce its CO2 footprint per car. During the first nine months of the year, overall CO2 emissions per car were 19% lower compared with its 2018 benchmark.

Volvo said its position on EVs now will set the company on a path for a fast start in 2024, when it will bring three new fully electric models on the roads. Deliveries of the EX30 to customers are starting soon, and on November 12 it will reveal the Volvo EM90, the company’s first-ever premium multi-purpose vehicle (MPV).