Volvo Cars reported an operating profit (EBIT), excluding joint ventures and associates, of SEK8.2bn for the second quarter of 2024, a single quarter record and an increase of 28% year on year.

EBIT margin reached a record high of 8.1% versus 6.3%.

"This improvement in the underlying profitability was a result of the company’s focus on pricing discipline, internal cost control and sustained growth in sales," the Geely owned automaker said in a statement.

During the quarter, global retail sales rose 15% to 205,400 cars driven by electrified models, sales of which grew by 43%.

The company said 48% of its global sales volume during the quarter consisted of plug in hybrid (PHEV) and fully electric (EV) cars while its EV-only share of sales rose to 26%.

Gross margins increased to 22.8% from 19% in Q2 2023. Gross margins on EVs reached a new high of 20%.

Revenue was lower at SEK101.5bn versus SEK102.2bn due to reduced income from contract manufacturing and a "normalisation" of sales to rental companies.

Revenues from operations during the quarter, excluding income from contract manufacturing, remained stable.