Volvo Car has just announced its first quarter results. For Q1 2022, the Swedish automaker sold 148,295 cars worldwide, down 20% year-on-year (185,700 cars in the first quarter of 2021). This is due to supply chain limitations – there is a shortage of certain ingredients, which will also affect production in the second quarter.
The automaker had to deal with the Russia-Ukraine conflict and the market turmoil caused by the Covid-19 lockdown in Asia. Jim Rowan, CEO of Volvo Cars, said: “In the first few months of 2022, the war in Ukraine destroyed lives and displaced millions of innocent people. The same war has already pushed rising inflation to new heights and further disrupted the supply chain, which was already fragile. “
Of the cars that Volvo sold in the first three months of the year, 34% (or about 50,000 units) were electric recharge models. Of these, 8% or about 12,000 units were fully electric vehicles. It marks 9% and 6% year-over-year growth, respectively
The best-selling Volvo model was the XC60 with about 45,000 deliveries, followed by the XC40 (ICE & PHEV) at 34,400 units and the XC90 at 22,000 units. China was its top market with 35,700 deliveries, although the number dropped -21% from Q1 2021 due to ongoing lockdowns in the country. It sold 22,800 cars in the United States (down -16%), 12,300 in Sweden (down -36%), and 11,100 in the United Kingdom (down -20%).
Despite the slowdown in sales, Volvo Car is optimistic about its year-end targets. “While summarizing Volvo Car’s performance this first quarter, I’m incredibly pleased that we’ve delivered such a stable result,” Rowan said. “The strategic aspect is clear and very focused.”
“The fastest transformer in the industry, a fully electric brand with direct consumer relations and low carbon emissions are our way forward. To achieve our ambitions, we will accelerate our product development, strengthen the resilience of our supply chain and accelerate our digital and software capabilities, ”he explained. For the whole of 2022, Volvo Cars expects the continued high growth of fully electric vehicles.