Volvo Cars reports 25% sales drop in April as lockdowns, supply woes weigh -Breaking
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© Reuters. FILE PHOTO – A Volvo dealer employee is seen wearing a mask in the showroom in Brussels, Belgium on May 28, 2020. REUTERS/Yves HermanSTOCKHOLM – Volvo Car Group said Wednesday that its monthly sales dropped 24.8% to April from a previous year. The automaker, based in Sweden, stated this because of global supply chain issues and lockdowns.
However, the Gothenburg-based business said that there was still strong demand and that fully electric cars accounted for 10% of total sales. This is up from 9% in March. The company aims to have 50% of all its sales be electric by the middle 2020.
Volvo released a statement saying that Covid-19 lockdowns, which occurred in China in April, had an impact on retail sales in China and increased the challenges of already weakening global supply chains.
The company’s sales in China, majority-owned by China’s Geely Holding declined 47.8% in April. In the United States, they dropped 9.2%, and in Europe, 23.2%.
Volvo Cars last week reported forecast-beating profits in spite of higher costs from war in Ukraine and global shortages of semiconductors.
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