Volvo Cars reported revenue of SEK151 billion (US$17.89 billion) and an operating profit of SEK9.5 billion (US$1.12 billion) for the second half of 2020. Profit increased 8.2% during the period and revenues were up by 4.9%, with the profit margin at 6.3%. According to the premium automotive manufacturer, these results reflect the company’s best ever second half in terms of sales, driven by strong demand for Volvo Cars’ Recharge line-up of chargeable cars. A total of 391,751 cars were sold in the second half, up 7.4% year-on-year.

For full year 2020, Volvo Cars reported revenue of SEK263 billion (US$31.16 billion) and an operating profit of SEK8.5 billion (US$1 billion). The company said it succeeded in reducing fixed costs in combination with growth, which had a positive influence on cash flow and liquidity. The share of Recharge cars as a percentage of total sales is reported to have more than doubled in 2020 compared with 2019.

During 2020, Volvo Cars said it observed an accelerated move towards online sales as a result of the pandemic, a development that the company expects to continue in 2021. For 2021, the company anticipates continued growth in sales volume and revenue, as it benefits from a strong product offering and further increases in online sales. “Assuming market conditions continue to normalise, this growth, as well as continued cost management, are anticipated to improve profitability to pre-corona levels”, said the manufacturer.

With ongoing investments in new technologies and new products, the company foresees a similar level of capital expenditure as in 2020. Cash flow is expected to remain strong and the company expects a continued reduction in its overall CO2 emissions per car, in line with the company’s ambition to reduce these by 40% by 2025.