Double-digit drop in sales for Volvo Cars

Worldwide
Published:  03 April, 2020

The premium automotive manufacturer has attributed the sharp drop in sales in the first quarter of the year to the COVID-19 pandemic.

Volvo Cars sold 131,889 cars in the first quarter of 2020, down 18.2% compared with the same period in 2019. Sales in China sales totalled 20,780 units, down 30.5% compared with the same quarter a year ago, primarily due to the lower sales performance in January and February. In March, Volvo Cars global sales declined 31.2%, year-on-year, to 46,395 units due to weakening demand in Europe (18.5%) and the U.S. (-11.7%).

Between January and March, the XC60 was the top selling model, followed by the XC40 and the XC90. SUVs accounted for 67.9% of the manufacturer’s total sales in the period, up from 60.3% in the first quarter of 2019. Volvo Cars’ Recharge line-up of chargeable Volvo models are said to have maintained a strong sales momentum in the first quarter, comprising of 14.7% of all cars sold in the period. The comparable share at the end of the same period in 2019 stood at 7.4%. Recharge is the overarching brand name for all chargeable Volvo models with a fully electric or plug-in hybrid powertrain.

Meanwhile, Volvo Cars said China is showing signs of recovery, as showroom traffic continues to improve. Volvo Cars has recently reopened its four manufacturing plants in China after an extended closure period due to the spread of the Coronavirus.