Volvo Cars reported full-year 2022 results with its focus on strategic ambitions of becoming a fully electric car company by 2030 and climate neutral by 2040. The car company’s revenue was up 17% YoY to 330.1 bn SEK, which is the highest revenue recorded in the history of the company.

For Q4 2022, its revenue was 105.2 bn SEK, and fully electric car sales share increased to 18% compared to 6% in the same period last year. The company aims to achieve 50% global sales share of fully electric Volvo cars by mid-decade with a lower carbon footprint and an 8-10% profitability.

Volvo Cars’ performance in 2022 saw a strong performance in sales of fully electric cars as it more than doubled compared to the previous year. Sales of the company’s Recharge cars that include fully electric cars and plug-in hybrids also had strong performance.

The Recharge cars had a share of 33% for the year and 41% during the fourth quarter. Jim Rowan, President and Chief Executive of Volvo Cars, expressed that the company made significant progress in 2022 towards its strategic ambitions despite facing prolonged supply constraints, lockdowns in China, and elevated material and logistics costs during the year.

The EBIT margin for the full year stood at 5.4%, which was affected by lower volumes on the back of production constraints, increased raw material and freight costs, and spot-buying of semi-conductors.

EBIT including JVs and associates came in at 22.3 bn SEK for the year, up 10% compared to 2021. Jim Rowan remains steadfast on the company’s strategic journey towards its ambition to become a fully electric car company and climate-neutral.

Volvo Cars expects a solid double-digit growth in retail sales during this year, provided there are no unexpected supply chain disruptions.

The company intends to continue increasing its volumes for fully electric cars in 2023, taking the full year share higher than last year’s share of 11 per cent.

“We have demonstrated in 2022 that we have turned up our execution engine. This will continue to deliver in 2023,” says Jim Rowan.