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Volvo Achieves Milestone in EX30 Production Amid Rising Demand

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Volvo's (VLVLY - Free Report) most affordable electric vehicle (EV), the EX30, has hit a major milestone. On Sept. 30, 2024, the 100,000th EX30 rolled off the production line amid rising demand for the budget-friendly electric sports utility vehicle (SUV). Since production began last fall in China, Volvo has now produced 100,000 units on the back of strong sales growth.

Despite its compact size, the EX30 is packed with Volvo’s signature technology and safety features. Per Volvo, the EX30 is a small but powerful new chapter for the brand. Starting at approximately $40,000, or around $28,600 in China, the EX30 has made a significant impact. Per Dataforce, it was recently ranked as Europe’s second-best-selling EV, behind the Tesla Model Y.

While EV registrations in the EU dropped 43.9% last month, Volvo's sales surged 36% year over year to 19,605 vehicles due to a significant rise in sales of the EX30, which contributed 6,377 units. However, the EX30's U.S. launch, initially planned for later this year, has been postponed to the second half of 2025 due to a new 100% tariff on Chinese EV imports. To avoid the tariff, Volvo plans to produce EX30 models at its Ghent, Belgium plant and export them to the United States. Once available, the EX30 will start at $34,950, making it one of the most affordable electric cars in the United States.

The EX30 offers a combined range of up to 295 miles on the WLTP cycle, with a city range of up to 367 miles. In the United States, it is expected to achieve an EPA-estimated range of up to 275 miles. Meanwhile, Volvo is also beginning deliveries of its larger electric SUV, the EX90. The first EX90 came off the production line at Volvo's South Carolina plant in June, as the company aims to boost its U.S. sales.

Although Volvo is seeing growth in EV sales, the company has cautioned investors about challenges in the sector. Per Martin Lundstedt, CEO at Volvo, booked orders for EVs declined 16% during the first quarter. The shift toward electrification and underlying demand for EVs is currently slowing, with the move to zero-emission transport still largely driven by early adopters. Per Volvo, the transition to an all-electric future won't be a straight path. The hybrid models will play a key role in easing the transition to more widespread EV adoption.

Volvo’s Zacks Rank & Other Key Picks

VLVLY currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the auto space are Dorman Products, Inc. (DORM - Free Report) , Blue Bird Corporation (BLBD - Free Report) and BYD Company Limited (BYDDY - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for DORM’s 2024 sales and earnings suggests year-over-year growth of 3.71% and 35.46%, respectively. EPS estimates for 2024 and 2025 have improved 51 cents and 37 cents, respectively, in the past 60 days.

The Zacks Consensus Estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.58% and 215.89%, respectively. EPS estimates for 2024 and 2025 have improved 65 cents and 80 cents, respectively, in the past 60 days.

The Zacks Consensus Estimate for BYDDY’s 2024 sales and earnings suggests year-over-year growth of 21.88% and 17.12%. EPS estimates for 2024 and 2025 have each improved by a penny in the past 60 days.

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