Volvo Cars has reported steady earnings in the second quarter in the face of ongoing uncertainties in global trade, increasing raw material prices, and supply chain constraints arising out of recent pandemic lockdowns in China.

In the report, Volvo Cars revealed its plans to significantly raise the contribution of electric cars in the global sales tally for 2022.

"For the full year 2022, the target remains of having a double-digit share of fully electric cars or more than double compared to 2021," the company stated.

Volvo Cars retail sales amounted to 143,006 cars, down 27% compared to the same period last year. Revenues amounted to $6.92 billion, down 2% compared with the same period last year and are less impacted than retail sales due to strong pricing and product mix.

The company’s CO2 reduction plans remained firmly on course. In the first half of the year, CO2 emissions were 10% lower compared with our 2018 benchmark, supporting Volvo Cars’ 2025 ambition of 40% CO2 reduction per car.

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Volvo Cars is seeing a marked improvement in the stabilisation of its supply chain with production making a strong comeback in June. Provided this normalisation continues, the company expects production to progressively increase in the coming months.

For the quarter, Volvo Cars’ Recharge models remained popular among customers even though production was hampered by ongoing supply constraints caused by the lockdowns in China.

In the second quarter, Recharge sales made up 31% of total sales, an increase from 24% of total sales in the same period last year, this could have been higher without supply constraints, said Jim Rowan, president and chief executive of Volvo Cars.

“When looking back at Volvo Cars’ performance during a very turbulent second quarter, we are satisfied that we have delivered steady earnings,” Rowan added.

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