Volvo Cars Global Sales Grow 41% In The First Half Of 2021

Volvo Cars reported the best half-year results in terms of sales and operating profit in its 94-year history amid increasing demand for its cars across all regions.The company achieved a revenue of 141 billion SEK, up 26 per cent, driven by strong demand and positive mix effects. Operating income was 13 billion SEK in the first six months of 2021, representing an operating margin of 9.4 per cent. 

Sales volumes rebounded 41 per cent compared to the pandemic-affected period in 2020, but the company also saw strong growth of 12 per cent compared to the first six months of 2019, a more relevant comparison without the pandemic disruption. The 12-month rolling sales volume is approximately 775,000 cars, just shy of the 800,000 target set 10 years ago. 

The demand for Recharge models has gone up significantly in the first half of 2021 

Hakan Samuelsson, chief executive of Volvo Cars said, "The company continued to grow strongly despite the industry-wide semiconductor shortage, but more importantly, we demonstrated that we are a leader of the ongoing transformation in the automotive industry," said 

Volvo Cars aims to become the fastest transforming company in the sector and to be fully electric by 2030. The appeal of Volvo's electric cars was demonstrated in the first half by the demand for its Recharge models. Sales of both its fully electric and plug-in hybrid cars grew significantly, now making up 25 per cent of the global volume. This is the highest electrification share as a proportion of total sales among traditional car makers. 

Looking at the remaining half year, Volvo Cars reiterates its full-year outlook. Unless supply of semiconductors improves, the company expects flat sales and revenue for the second half year, compared with the same period last year, despite strong customer demand.