Volvo Cars reported record first half year sales in 2019 of 340,826 cars, up 7.3 per cent compared with the same period last year. The company sold 317,639 cars in the first six months of 2018.
China, US and Europe all reported a steady growth for the six-month period, with China recording its highest ever first half and June sales volumes. During the period, Volvo grew consistently faster than its premium competitors, thereby gaining market share across these regions.
The first half performance came on the back of continued strong demand for Volvo’s award winning SUV range led by the XC60, followed by the XC40 and the XC90. The company’s latest models, the V60 estate, the V60 Cross Country and the US-built S60 sedan contributed to increased volumes as well. Volvo has also started the first deliveries of its mild hybrid offerings to customers.
In June, Volvo Cars sold 62,775 cars, down 2 per cent compared to the same period last year. The decline came from Europe where sales for the month fell 9 per cent to 30,234 cars, as Volvo’s largest market in the region, Sweden reported a 41.7 per cent sales decline to 5,762 cars. Sweden sales in the month were lower because of higher than usual delivery of cars in the same month last year owing to the implementation of a new emission tax or the Bonus Malus from the subsequent month.
For the first six months, European sales of the company remained steady with a growth of 6 per cent, led by the XC40 and the XC60 SUVs and the new V60 estate. Total sales in the January to June period reached 174,398 cars, with UK and Germany recording a growth of 29.6 per cent and 32 per cent respectively.
The company reported its highest ever first half year sales in China of 67,741 cars, up 10.2 per cent, compared to the same period last year. Strong demand for the locally produced XC60 and the S90 models led the volume growth in the six month period. In June too, Volvo reported its highest sales ever for China in a single month with a total 13,238 cars sold, up 13.3 per cent.
Volvo’s US sales reached 50,120 cars in the first half of the year, up 5.2 per cent compared to the same period last year. The company’s SUVs led by the XC90, XC60 and the XC40 remained popular in the region, contributing to the volume growth for the period. In June, US sales reached 9,934 cars, up 0.7 per cent.
A detailed regional break-up of sales is given below.
Globally, the XC60 continued to be the top selling model in the first half of the year with sales reaching 97,203 cars (2018: 88,786 units), followed by the XC40, with total sales of 61,864 cars (2018: 23,741 units) and the XC90 with sales of 47,818 cars (2018: 47,658 units).
Volvo Car Group in 2018
For the 2018 financial year, Volvo Car Group recorded an operating profit of 14,185 MSEK (14,061 MSEK in 2017). Revenue over the period amounted to 252,653 MSEK (208,646 MSEK). For the full year 2018, global sales reached a record 642,253 (571,577) cars, an increase of 12.4 per cent versus 2017. The results underline the comprehensive transformation of Volvo Cars’ finances and operations in recent years, positioning the company for its next growth phase.
About Volvo Car Group
Volvo Cars was founded in 1927. Today, it is one of the most well-known and respected premium car brands in the world with sales of 642,253 cars in 2018 in about 100 countries. Volvo Cars has been under the ownership of the Zhejiang Geely Holding of China since 2010.
In 2018, Volvo Cars employed on average approximately 43,000 (39,500) full-time employees. Volvo Cars head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars head office for China is located in Shanghai. The company’s main car production plants are located in Gothenburg (Sweden), Ghent (Belgium), South Carolina (US), Chengdu and Daqing (China), while engines are manufactured in Skövde (Sweden) and Zhangjiakou (China) and body components in Olofström (Sweden).
Under its new company purpose, Volvo Cars aims to provide customers with the Freedom to Move in a personal, sustainable and safe way. This purpose is reflected into a number of business ambitions: by the middle of next decade it aims for half of its global sales to be fully electric cars and to offer half of all cars to customers via its subscription service. By then, it also expects one-third of its cars sold to be autonomous.