Volvo Cars reports 25% sales drop in April as lockdowns, supply woes weigh
STOCKHOLM (Reuters) – Volvo Automotive Group’s month-to-month gross sales fell 24.8% in April from a yr in the past, the Sweden-based automaker mentioned on Wednesday, as lockdowns in China and international provide chain issues hampered manufacturing.
The Gothenburg-based firm mentioned nonetheless that demand remained robust, whereas the share of absolutely electrical vehicles rose to 10% from 9% in March. It goals for 50% of its gross sales to be pure electrical vehicles by the center of this decade.
“In April, Covid-19 lockdowns in japanese China impacted retail deliveries in China and added extra challenges to already weakened international provide chains, leading to further lack of manufacturing,” Volvo mentioned in an announcement.
Gross sales in China on the firm, which is majority owned by China’s Geely Holding, declined 47.8% in April, whereas in the US they fell 9.2% and in Europe 23.2%.
Volvo Vehicles reported final week forecast-beating earnings regardless of larger prices as a result of warfare in Ukraine, and a world scarcity of semiconductors.
(Reporting by Helena Soderpalm; enhancing by Niklas Pollard)
