Volvo Cars reports a noticeable 10.6% year-over-year decline of its global car sales August, down to 45,786 units (the year-to-date result is up 26.1% to 483,426).
The reason for that is the current situation with the shortage of semiconductors. Volvo warns that it will be difficult to even match the 2020 production level in the rest of the year, despite demand being strong.
“Since mid-July, supplier shut-downs due to Covid-19 in South East Asia, especially in Malaysia, has worsened an already strained supply situation. These material shortages have led to temporary production halts at Volvo Cars’ facilities in Sweden, Belgium, China and the US, with reduced production volumes as a result.
Volvo Cars continues to monitor the situation and currently expects that, for the second half of 2021, it will be challenging to achieve the volume levels achieved during the same period 2020. This will have an impact on revenue and profit, but Volvo Cars’ outlook for the full year 2021 still remains.”
This affects also Volvo’s plug-in Recharge subbrand, although its share out of the overall volume remains stable at 24.2%. That’s over 11,000 units (all-electric and plug-in hybrid).
Year-to-date, Volvo Cars has sold close to 120,000 plug-ins.
In Europe, specifically, Volvo Recharge share is already very high at 47%, which translates to 6,134 units. In the U.S. it’s 18.5% and almost 2,000 units.
“European sales for the month were down to 13,052 cars, a 25.4 per cent decline compared to the same period last year. The decline in sales was related to the material shortage, which affected the production volumes and, consequently, the sales performance in the region.”
By 2025, Volvo intends to achieve a global BEV share of 50%, which by 2030 should increase to 100%.
Volvo Cars detailed results: