Volvo Cars reported global sales of 45,752 cars in January, down 9.7 per cent compared with the same period last year. Volumes last month were impacted due to a new, updated tax system in Sweden and a lower sales performance in China.
Despite the January result, Volvo Cars continues to expect a growth in global volumes for the full year of 2020.
During the month, Volvo Cars’ award-winning SUVs maintained a solid sales momentum with total SUV volumes reaching 31,057 cars, accounting for 67.9 per cent of the company’s total sales. The XC60 continued to be the top-selling model for the company, followed by the XC40 and the XC90.
Volvo Cars’ Recharge line-up of chargeable Volvo models reported a 63.3 per cent jump in January sales compared with the same period last year, and comprised 13.5 per cent of all cars sold in the month. The comparable share at the end of January 2019 stood at 7.5 per cent.
The company aims for plug-in hybrid cars to reach a 20 per cent share of sales in 2020. Recharge is the overarching brandname for all chargeable Volvo models with a fully electric or plug-in hybrid powertrain.
US sales in January reached 6,157 cars, up 5.2 per cent, compared with the same period last year. XC90 was the top selling model in the United States, followed by the XC60 and the XC40.
China sales declined 16.2 per cent in January, compared with the same period last year to 10,015 cars. The locally manufactured XC60 was the top selling model in the region, followed by the S90 sedan.
European sales for the month declined 12.9 per cent, compared to the same period last year. Volvo Cars’ largest market in the region, Sweden, reported a 31.9 per cent drop in volumes because of an updated tax system that took effect from January 2020.
A detailed break-up of regional sales is given below:
|
January |
January |
||
|
2019 |
2020 |
Change |
|
|
Europe |
26,195 |
22,810 |
-12.9% |
|
China |
11,957 |
10,015 |
-16.2% |
|
US |
5,854 |
6,157 |
5.2% |
|
Other |
6,673 |
6,770 |
1.5% |
|
Total |
50,679 |
45,752 |
-9.7% |
In January 2020, XC60 was the top selling model with 13,353 cars (2018: 15,593 units), followed by the XC40 with 10,802 cars (2018: 8,113 units) and the XC90 with sales of 6,902 cars (2018: 6,520 units).
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Volvo Car Group in 2018
For the 2018 financial year, Volvo Car Group recorded an operating profit of 14,185 MSEK (14,061 MSEK in 2017). Revenue over the period amounted to 252,653 MSEK (208,646 MSEK). For the full year 2018, global sales reached a record 642,253 (571,577) cars, an increase of 12.4 per cent versus 2017. The results underline the comprehensive transformation of Volvo Cars’ finances and operations in recent years, positioning the company for its next growth phase.
About Volvo Car Group
Volvo Cars was founded in 1927. Today, it is one of the most well-known and respected premium car brands in the world with sales of 705,452 cars in 2019 in about 100 countries. Volvo Cars has been under the ownership of the Zhejiang Geely Holding of China since 2010.
In 2018, Volvo Cars employed on average approximately 43,000 (39,500) full-time employees. Volvo Cars head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars head office for APAC is located in Shanghai. The company’s main car production plants are located in Gothenburg (Sweden), Ghent (Belgium), South Carolina (US), Chengdu and Daqing (China), while engines are manufactured in Skövde (Sweden) and Zhangjiakou (China) and body components in Olofström (Sweden).
Under its new company purpose, Volvo Cars aims to provide customers with the Freedom to Move in a personal, sustainable and safe way. This purpose is reflected into a number of business ambitions: for example, by the middle of this decade it aims for half of its global sales to be fully electric cars and to generate half of its revenue from its direct consumer business. Volvo Cars is also committed to an ongoing reduction of its carbon footprint, with the ambition to be a climate-neutral company by 2040.
