Volvo sales drop sharply in second quarter of 2022

Firm has remained pleased with ‘steady earnings’ during a ‘turbulent second quarter’.

Volvo XC40
Volvo XC40

Volvo’s retail sales fell by 27 per cent in the second quarter of 2022, though demand for its electrified vehicles continued to grow.

Retail sales decreased to 142,000 cars, with revenue down by two per cent as a result to SEK 71.3 billion (£5.8bn).

The decline has been put down to ‘ongoing uncertainties in global trade, increasing raw material prices, and supply chain constraints arising out of recent pandemic lockdowns in China’, yet the Swedish firm says that it is already seeing a ‘marked improvement’ in the stabilisation of its supply chain, with production already making a ‘strong comeback’ in June. Volvo expects production to ‘progressively’ increase in the coming months as a result.

Though Volvo predicts that wholesale volumes for 2022 will be better than those in 2021, a time lag between production and retail deliveries means that this is not predicted to translate into an increase in retail sales this calendar year.

Jim Rowan, president and chief executive of Volvo Cars, said: “When looking back at Volvo Cars’ performance during a very turbulent second quarter, we are satisfied that we have delivered steady earnings.

“The demand for our products continues to be robust and we remain focused and clear that the short-term business challenges will not weaken our resolve to meet our mid- to long-term strategic ambitions. If anything, it will only speed up our pace of change.”

Volvo has, however, seen continued demand for its Recharge range of electrified vehicles, despite production being hampered by continued supply chain issues. In the second quarter of the year, sales of the firm’s Recharge vehicles accounted for 31 per cent of total sales – an increase from the 24 per cent in the same period last year.

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