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June 22, 2022

Electric to drive Volvo Group growth

The group has established a claimed industry-leading profitability.

By Graeme Roberts

At the Volvo Group’s Capital Markets Day on 22 June, president and CEO Martin Lundstedt and group management outlined the major business opportunities in the ongoing technology shift that is expected to accelerate sales growth.

Over the last decade, the group has established a claimed industry-leading profitability and is now taking the next step. Growth is expected to accelerate with the main driver being the higher value of the electric vehicles and machines. With electric vehicles there is a potential to increase the total vehicle and service revenues per unit by more than 50% over the lifecycle. Leveraging the group’s first-mover advantage to gain market shares and broadening the services offering are also expected to drive growth. While capturing these growth opportunities, financial targets remain.

“Climate change is the challenge of our generation. At the same time, demand for transport and infrastructure continues to grow and we must meet this demand with more sustainable solutions. In this changing landscape, we can lead the transformation and provide increased value for our customers and embark the group on a growth journey driven by electrification, autonomous solutions and new productivity services. We are geared for growth,” said Lundstedt.

There is a strong pull from customers that want to partner up with the group to decarbonise both their own value chains and those of their customers. The group has the electric products, services and solutions that can make this happen.

“Our modular vehicle architectures will continue to serve us well, creating flexibility as well as cost and capital efficiencies in both R&D and the industrial system as we go through the transformation to electric and autonomous vehicles. We invest to win,” said Lundstedt.

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