Volvo Cars reports 25% sales drop in April as lockdowns, supply woes weigh

An employee at a Volvo car dealer, wearing a protective mask is seen in a showroom, in Brussels, Belgium, May 28, 2020. REUTERS/Yves Herman

Register now for FREE unlimited access to Reuters.com

STOCKHOLM, May 4 (Reuters) – Volvo Car Group’s (VOLCARb.ST) monthly sales fell 24.8% in April from a year ago, the Sweden-based automaker said on Wednesday, as lockdowns in China and global supply chain problems hampered production.

The Gothenburg-based company said however that demand remained strong, while the share of fully electric cars rose to 10% from 9% in March. It aims for 50% of its sales to be pure electric cars by the middle of this decade.

“In April, Covid-19 lockdowns in eastern China impacted retail deliveries in China and added more challenges to already weakened global supply chains, resulting in additional loss of production,” Volvo said in a statement.

Sales in China at the company, which is majority owned by China’s Geely Holding (GEELY.UL), declined 47.8% in April, while in the United States they fell 9.2% and in Europe 23.2%.

Volvo Cars reported last week forecast-beating profits despite higher costs due to the war in Ukraine, and a global shortage of semiconductors. read more

Register now for FREE unlimited access to Reuters.com

Reporting by Helena Soderpalm; editing by Niklas Pollard

Our Standards: The Thomson Reuters Trust Principles.

Source link

Check Also

A Quarter Of All EV Chargers Don’t Work, Half Of Car Trips Are Less Than 3 Miles

Figures lie and liars figure, so make your own judgement about the following statistics, which …

Leave a Reply

Your email address will not be published.

 

SUBSCRIBE TO OUR NEWSLETTER

 

Get our latest downloads and information first. Complete the form below to subscribe to our weekly newsletter.