Sweden Volvo cars Thursday I mentioned 12 % increase in the general operation revenues for the entire year, but it has warned of intense market challenges in the market before intensifying the competition of electric cars and global definitions.
The majority of Geely Holding China said that the operating income reached 22.3 billion Swedish chrons ($ 2.04 billion) in 2024 amid an increase of 8 % sales.
However, the profits have slid at 28 % in the last three months of the year, which the company said was twice as much as 1.7 billion kronor in relation to its joint project with the Swedish battery developer Northfolt, Novo Energy. Sales increased year on an annual basis for the fourth quarter by 1 %, but they threw 6 % in China and 2 % in the United States
The company launched directives in 2026 to provide basic profits before the margin of interest and taxes (EBIT) by 7-8 %, but it said that 2025 will be a “difficult and transitional year” towards the long-term growth aspirations of Volvo, and the slower market growth and “increased discounts” expects in All parts of the industry.
This added that this will make it difficult to match the company’s sizes and its profitability 2024.
The shares fell 11.1 % in the European market on Thursday.
The full electrical Volvo EX30 is shown during everything Electric London 2024 in Excel in London, March 28, 2024.
John Kibel Getty Images News | Gety pictures
Many car manufacturers are struggling with increasing competition and high expenses in the area of electric vehicles, including leading players such as Timing.
In September, Volvo Cars canceled its plan to sell EVS only by 2030, noting “different adoption speeds” by customers. In its results 2024, the EV battery sales share increased to 23 % of 16 % during the previous year.
“I think it is a reasonable performance given the amount of turmoil that we saw even in [20]24, “Volvo Cars Jim Rowan CEO told CNBC to” Squawk Box Europe “about the results in an interview on Thursday.
“in [20]25 I think we will see that the disorder is increasing. And the way I fram, I think we will see the turmoil in terms of commercial definitions, and perhaps some political geography, and we will see some changes in politics. I also think we will see the transition to EV slowly slowing, which is good for Volvo cars, because we have a light hybrid technology as well as connecting hybrid technology. “
Global car shares were postponed on Monday after US President Donald Trump announced 25 % of the customs tariff for Canada and Mexico, and the main production and supply rules for vehicle imports in the United States that many have regained since the implementation of duties for 30 days.
Rowan said that Volvo cars are now evaluating whether they need to turn their production lines to protect themselves.
He said that the company had already had to move in an increasing tariff for EVS coming from China to the European Union and was transferring production from China to Belgium as a result.
“Last year, we saw the batteries increasing from 7.5 % to 25 % when imported to the United States of America, if they grew up from outside the United States from a country without a free trade agreement,” CNBC told CNBC.
“So we’ll see more, and we need to wait to see how it is run, of course, but we promise ourselves to see if we need to start searching in transferring production or even transporting suppliers to various parts of the world.
“Then we will see this big shift to technology outside an electrification, so that software, silicone, communication and data become more deep.”
It is expected to stimulate the high cost of developing new car technology such as self -driving vehicles in part, unifying the industry, which recently led to volatile integration talks in Japan. Honda and April.
A competition from Chinese players like Byd“The opponent focuses mainly on entry, Evs Mass Market,” Rowan told CNBC.
He added that his company does not “really play in this sector” and mainly sell moderate and spatial electrical hybrids in China, and take advantage of the demand for a distinguished offer.
“However, I think we will start seeing in 2025 some additional discounts that may start to infringe on the excellent market, as well as some Western brands lose its share in the market in China. Then, of course, it is Rawan:” Go to the markets Local and other global markets and try to capture the market share there in order to maintain revenue flows at the same level. “
“So I think excessive competitiveness, price and discipline begin in China. But I think this will be permeated across Europe and North America as well, until 2025.”