Volvo reports another significant decrease of its car sales in the US. In June the company has delivered 8,434 cars (down 31.2% year-over-year), while year-to-date it’s 50,585 (down 20.7%).
Anders Gustafsson, Senior Vice President, Volvo Car Americas and President and CEO, Volvo Car USA explained shortly:
“Demand for our cars remains strong but inventory challenges continue,”
The situation is not better in the case of plug-in electric cars, as the Volvo Recharge lineup also noted a slight decrease.
Last month, a total of 2,118 plugs-in were sold, which is 14% less than a year ago. On the positive side, the share of Volvo plug-ins increased to 25.1%. In California it’s 75%.
Volvo plug-in car sales in June 2022:
- BEVs: 553 (down 24% year-over-year)
- PHEVs: 1,565 (down 10% year-over-year)
- Total Recharge: 2,118 (down 14% year-over-year)
So far this year, Volvo sold in the US over 15,000 plug-in cars, compared to over 22,000 in 12 months of 2021.
Volvo plug-in car sales year-to-date in 2022:
- BEVs: 3,811 (up 64% year-over-year)
- PHEVs: 12,094 (up 56% year-over-year)
- Total Recharge: 15,905 (up 58% year-over-year)
Volvo clearly has supply issues, but things start to improve recently and according to a separate press release, in June production has increased to the highest level this year.
In other words, there is a hope that sales will increase later this year. Volvo is currently switching to the 2023 model year lineup, which consist only electrified models (mild hybrid, hybrid, plug-in hybrid or all-electric).
Electrification of the lineup is expected to increase gradually, reaching 100% BEVs by 2030. The most important thing for Volvo right now is the introduction of all-new, all-electric models, based on a next-generation platform.
The success of those new, not yet unveiled BEVs, will give us an idea of whether Volvo did its homework. According to the plan, the company has to not only complete the transition to electric cars, but also increase sales (to 1.2 million annually by 2030) and achieve satisfactory profitability (operating margin of 8-10 percent by mid-decade).
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