Volvo Cars reports first quarter global sales

Volvo Cars sold 131,889 cars in the first quarter of 2020, down 18.2 per cent compared with the same period last year. The company’s global sales performance was affected by the continued impact of the Coronavirus pandemic.

In March, Volvo Cars global sales reached 46,395 cars, down 31.2 per cent compared with the same period last year, led by weakening demand in Europe and the US. China meanwhile is showing signs of recovery, as showroom traffic continues to improve.

During the January to March quarter, the XC60 was the top selling model for the company, followed by the XC40 and the XC90. SUVs accounted for 67.9 per cent of the company’s total sales in the period, up from 60.3 per cent in the first quarter last year.

Volvo Cars’ Recharge line-up of chargeable Volvo models maintained a strong sales momentum in the first quarter, comprising of 14.7 per cent of all cars sold in the period. The comparable share at the end of the same period last year stood at 7.4 per cent. Recharge is the overarching brand name for all chargeable Volvo models with a fully electric or plug-in hybrid powertrain.

China sales during the quarter reached 20,780 cars, down 30.5 per cent as compared with the same period last year, primarily due to the lower sales performance in January and February. In March, showroom traffic in the region started to pick up pace. Earlier this month Volvo Cars also reopened its four manufacturing plants in China after an extended closure period due to the spread of the Coronavirus.

US sales in the January to March period stood at 19,485 cars, down 11.7 per cent, compared with the same period last year. A majority of States in the country have now implemented stay-at-home orders which have led to a significant drop in showroom traffic in March that affected the first quarter volumes.

Volvo Cars’ sales in Europe reached 70,510 cars in the first three months of the year, down 18.5 per cent as compared with the same period last year. The sales performance was significantly impacted in March due to restriced movement in several key markets including Germany, the UK, France, Italy and Belgium among others.

A detailed break-up of regional sales is given below:

During

	March			January-March
	2019	2020	Change	2019	2020	Change
Europe	37,325	24,258	-35%	86,520	70,510	-18.5%
China	11,413	9,560	-16.2%	29,886	20,780	-30.5%
US	9,569	5,487	-42.7%	22,058	19,485	-11.7%
Other	9,150	7,090	-22.5%	22,856	21,114	-7.6%
Total	67,457	46,395	-31.2%	161,320	131,889	-18.2%

During the first three months, the XC60 was the company’s top selling model with total sales of 36,930 cars (2019: 46,259 cars), followed by the XC40 with 34,268 cars (2019: 28,903 cars) and the XC90 with 18,327 cars (2019: 22,073 cars).

Volvo Car Group in 2019

For the 2019 financial year, Volvo Car Group recorded an operating profit of 14.3 BSEK (14.2 BSEK in 2018). Revenue over the period amounted to 274.1 BSEK (252.7 BSEK). For the full year 2019, global sales reached a record 705,452 (642,253) cars, an increase of 9.8 per cent versus 2018. 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 since 2010.

In 2019, Volvo Cars employed on average approximately 41,500 (41,500) 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.