Volvo Cars reported sales of 44,664 cars in July, down 21.5 percent compared with the same month last year. Demand for the company’s cars remains robust, especially for its Recharge range of pure electric and plug-in hybrid cars.
July sales continued to be affected by supply constraints being carried over from previous months due to Covid-related lockdowns in China. This particularly affected retail deliveries of Recharge cars during the month and is expected to continue to affect its retail sales into the current quarter.
Recharge cars accounted for 21.5 percent of sales in July. The share of fully electric vehicles stood at 3.5 percent. For the full year 2022, the target remains of having a double-digit share of fully electric cars.
As communicated recently, Volvo Cars continue to see a marked improvement in the stabilization of its supply chain, with July confirming the positive trend in production as seen already in June. Provided this normalization continues, the company expects production to progressively increase in the coming months.
On the back of this expected improvement, the company anticipates retail sales to be flat or slightly lower for the full year 2022, compared with volumes in 2021.
European sales for July reached 15,893, down 29.1 percent compared with the same month last year. Sales of Recharge cars accounted for 39.9 percent of the total sales in the region during the month.
Volvo Cars’ US sales for the month reached 8,686 cars, down 40.7 percent compared with July last year, with Recharge models making up 14 percent of the total sales.
China sales went up by 6.4 percent in July to 15,487 cars compared to the same month last year.
Volvo Cars’ top-selling model for the month was the XC60 with sales of 16,261 cars (2021: 19,132 units), followed by the XC40 at 10,640 cars (2021: 15,097) and the XC90 at 7,764 cars (2021: 9,694 units).