Volvo Cars suffers nearly 25% sales dip in April
The company said demand continues to be high
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Volvo Car Group's monthly sales dropped nearly 25% in April from a year ago, the company announced Wednesday.
This comes amid coronavirus lockdowns in China and global supply chain problems slowing production.
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A Volvo XC 90 is displayed at Volvo Cars Showroom in Stockholm ((Jonas Ekstromer/TT via AP, file) / AP Newsroom)
The company said demand continues to be high, with the share of fully electric cars increasing from 9% to 10% in March, and that it strives for 50% of its sales to be fully electric cars by 2025.
"In April, COVID-19 lockdowns in eastern China impacted retail deliveries in China and added more challenges to already weakened global supply chains, resulting in additional loss of production," Volvo said in a statement.
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BRUSSELS, BELGIUM - JANUARY 9: Volvo S60 T8 executive plug-in hybrid sedan car on display at Brussels Expo on January 9, 2020 in Brussels, Belgium. The Volvo S60 is available as sedan and as station wagon called V60 (Sjoerd van der Wal/Getty Images / Getty Images)
Volvo's sales in China fell 48% in April. The company also suffered drop-offs in sales in the U.S. at 9.2% and in Europe at 23.2%.
Last week, Volvo Cars said it had beat profit expectations despite a shortage of semiconductors around the globe and higher costs of production caused by Russia's war on Ukraine, which has resulted in more expensive raw materials, energy and freight.
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Cardiff, UK: August 19, 2019: Volvo Car Dealership. Volvo cars, stylized as VOLVO - is a luxury vehicles brand and is a subsidiary of the Chinese automotive company Geely. (iStock / iStock)
The company announced in February it had suspended all sales, service and production in Russia over its invasion. Last year, business in Russia accounted for about 3% of the company's net group sales.
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Reuters contributed to this report.