10:30 PM | August 20 2021
Record half-year results for Volvo Cars
An increase in demand for Volvo vehicles across all regions including Australia has resulted in the company’s best half-year sales and operating profit to date.
Volvo Cars has reported the best half-year results in terms of sales and operating profit in its 94-year history amid increasing demand for its cars across all regions.
Sales volumes have rebounded 41 per cent compared to the pandemic-affected period in 2020, while the company also saw strong growth of 12 per cent compared to the first six months of 2019 – a more relevant comparison without the pandemic disruption.
The company’s financial report for the first six months of 2021 show revenue has increased 26 per cent to 141 billion Swedish kronor (A$22 billion), with operating income at 13 billion Swedish kronor (A$2.04 billion) to represent an operating margin of 9.4 per cent.
The 12-month rolling sales volume is approximately 775,000 cars – just shy of the 800,000 target set 10 years ago.
Volvo Cars’ global success is reflected in Australia, where the company is on track to achieve a milestone of 10,000 annual sales. After the first half of 2021, 5439 Volvo vehicles have been sold – representing a year-to-date increase of more than 60 per cent. “In 2021 Volvo is consistently achieving very high double-digit growth, and we are well on track to achieve 10,000 sales for the first time in our history in Australia,” said Stephen Connor, Volvo Car Australia managing director. “This reinforces Volvo's standing as the fastest growing luxury car brand in Australia.”
Volvo has launched a 2022 model range at the start of the second half of 2021, which will be pure electric, mild-hybrid or plug-in hybrid as the company forges ahead with its electrification strategy.
Commenting on the first-half results, Volvo Cars chief executive Håkan Samuelsson (main image) said:
“The company continued to grow strongly despite the industry-wide semiconductor shortage, but, more importantly, we demonstrated that we are a leader of the ongoing transformation in the automotive industry.”
Volvo Cars aims to become the fastest-transforming company in the sector and to be fully electric by 2030.
The appeal of Volvo’s electric cars was demonstrated in the first half by the demand for its Recharge models. Sales of both its fully electric and plug-in hybrid cars grew significantly, now making up 25 per cent of the global volume. This is the highest electrification share as a proportion of total sales among traditional car makers.