Volvo Remains Positive Despite Sales Nosediving

Volvo has released its global sales figures for April 2022 and the results are a mixed bag. While the Swedish brand proudly boasts that sales of its electrified Recharge models are growing from strength to strength, it reported an overall decline of 24.8% compared to the same period last year.

Volvo Cars saw sales of Recharge models surge, with an increase of 18.7% compared to April 2021. All in all, electrified models made up 38.4% of the automaker’s total sales. Fully electric vehicles such as the XC40 Recharge made up 10% of total global units sold. With upgraded Recharge models on the way, we’re likely to see even better figures in the coming months. In the United States, Volvo managed to shift 793 fully electric vehicles compared to 333 examples during the same period last year.

With a total of 47,150 cars sold across the world last month, USA sales represent a significant chunk of overall sales. 10,022 cars left local dealerships in April and, while that sounds impressive, it still represents a 9.2% decline year-on-year. Interestingly, Recharge models comprised 44.1% of total US sales; further evidence that stateside consumers are warming up to EVs.

The biggest blow to sales comes from Europe and China. Our continental contemporaries purchased 19,822 Volvos in April, down from 25,816 in April last year. It gets worse when you look at China’s figures – a mere 8,579 consumers signed on the dotted line. In April 2021, Volvo sold a whopping 16,435 vehicles in the Land of the Red Dragon; this represents a 47.8% decline. So, what’s causing this sale dive? Are people looking to other brands? Well, no – Volvo says the chip crisis is to blame.

The Gothenburg-based brand noted that Covid-19 lockdowns in China have affected deliveries and exacerbated the brand’s challenges, including weakened supply chains. What’s more, the company has reiterated that second-quarter production will be impacted due to the scarcity of a specific semiconductor chip.

With a resilient outlook, Volvo has said it “considers this a temporary setback” and hopes the chip crisis and supply chain woes to lessen in the second half of 2022 – BMW’s CEO doesn’t share this positive outlook. The brand’s best-selling models are, naturally, its SUVs. The handsome XC60 led the pack, mustering up a total of 14,952 sales. Following closely was the XC40 at 13,876, and the range-topping XC90 at 8,208.