Volvo’s revenue increased 30% year-on-year in the third quarter of 2022, despite a drop in sales impacted by ongoing supply issues and lockdowns in China.
The Swedish manufacturer, owned by Chinese automotive giant Geely, sold 138,000 cars from July to September, representing a retail sales decrease of 8% - down from 150,000 units in Q3 2021.
It has subsequently predicted a lower sales volume than it achieved in 2021.
Volvo’s revenue at the end of the quarter stood at SEK 79.3 billion (£6.3bn), while total profit stood at SEK 3.5bn (£278 million).
Boss Jim Rowan attributed the firm’s slowing sales to high material prices, the semiconductor shortages and lockdowns in China, caused by Covid and heatwaves.
“Macroeconomic uncertainties around the world weighed on our third-quarter performance,” Rowan said. “But with a nimble and agile organisation, strong financial position and ample liquidity, we're confident we will tide over the ongoing challenges.”
Ahead of the unveiling of the Volvo EX90 electric SUV on 9 November, sales of the firm’s electrified Recharge models remain healthy.
The number of electric cars that Volvo sold in Q3 sold rose 87% over the same period last year, to form 7% of its total sales figure. It sold 6000 EVs in September alone, 12% of its overall sales.
"We're on an exciting path to transform our company towards becoming a fully electric car brand by the end of this decade and reach climate-neutrality by 2040,” Rowan said. “We remain focused on that strategic direction.”
Volvo has already significantly reduced its CO2 footprint, with emissions dropping by 11.8% per car compared with 2018, ahead of its goal to achieve a reduction of 40% per car by 2025.
“Even though we've increased our lead times, we’ve not seen any reduction in demand," said Rowan. "While that has increased over the last few months, we’re now getting into a situation where lead times could come down for some models.
“I’m increasingly confident we have the right strategy. There’s a lot of lumps and bumps and there’s a lot of turbulence. I think every industry in the world is facing a lot of fo turbulence, given all between the dreadful war in Ukraine, the increased energy prices, raw materials, inflation, Covid lockdowns in China and semiconductor issues. Of course, we’re having to navigate through this.”
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