Home » News » Volvo Cars reports record six-month performance in H1 2021

Volvo Cars reports record six-month performance in H1 2021

posted in: News 0

Volvo Cars today 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.

The half-year financial report showed the company achieved a revenue of 141 billion SEK, up 26 per cent, driven by strong demand and positive mix effects. Operating income was 13 billion SEK in the first six months of 2021, representing an operating margin of 9.4 per cent.

Sales volumes rebounded 41 per cent compared to the pandemic-affected period in 2020, but 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 12-month rolling sales volume is approximately 775,000 cars, just shy of the 800,000 target set 10 years ago.

“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,” said Håkan Samuelsson, chief executive of Volvo Cars.

XC40 R-Design expression, in Crystal White Pearl

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.

As part of the move towards full electrification, the company launched the second all-electric Volvo C40 Recharge. At the same time, they have strengthened their online sales strategy to meet changing consumer behavior. From now on, all fully electric models will be available exclusively through volvocars.com, and customers can order at their place of preference; from their home, at a Volvo studio, or together with a retailer. 

Securing sustainable batteries is key for Volvo Cars’ transformation. The company is therefore planning to join forces with Northvolt as a strategic partner for joint development and manufacturing of next generation battery cells.

To ensure focus on electrification, Volvo Cars is carving out its internal combustion engine operations into a new unit, Aurobay, in which Geely Holding will be a main shareholder. Through Aurobay, Volvo Cars will realise synergies as well as secure a supply of competitive combustion engines for its hybrid powertrains until the company is fully electric.

“Volvo Cars has a decade-long track record of successful transformation. The car industry is changing more than ever, and we have a strong determination to be the fastest transformer,” said Håkan Samuelsson.

In May, the Board announced that it is evaluating a possible initial public offering (IPO) on Nasdaq Stockholm. The evaluation process continues.

Looking at the remaining half year, Volvo Cars reiterates its full-year outlook. Unless supply of semiconductors improves, the company expects flat sales and revenue for the second half year, compared with the same period last year, despite strong customer demand.

The post Volvo Cars reports record six-month performance in H1 2021 appeared first on AutomotorPro.com.

Follow Marco Carvajal:
Marco Carvajal has many years of experience in the editorial world, in the entertainment industry including events, cars, music and other fields. He also has wide experience in business, e-business and e-commerce. He is actively involved in the development of AutomotorPro.com and other affiliated car publications, from marketing and business management, to the editorial department as a contributing writer and editor for other writers. His passion for automobiles, travel and art, supports the development of AutomotorPro.com in an original and unique way, as a leader in the automobile editorial industry, nationwide in the United States and international territories. Marco graduated from the University of Miami, in addition to additional studies at other universities and institutions. In the field of business, he has created several enterprises and multinational projects related to publishing and entertainment. As a writer, the number one goal for Marco Carvajal is to be able to communicate clear information easy to understand for our subscribers, in an easy language, very detailed, about automobiles and lifestyle. He also likes to show a different perspective, with innovative style, about the information and characteristics of each car, mostly oriented to the daily life, about what each person may want learn about each car, thinking on the practical daily use of cars in real life. Marco Carvajal tiene muchísimos años de experiencia en el mundo editorial, en la industria del entretenimiento incluyendo eventos, autos, música y otros, así como gran experiencia en los negocios, e-business y e-commerce. Se envuelve activamente en el desarrollo de AutomotorPro.com, desde aspectos de mercadeo y manejo de negocios, hasta el departamento editorial donde también escribe y edita artículos de otros escritores. Su pasión por los autos, viajar y el arte, le ayudan a AutomotorPro.com a desarrollarse de una forma original y única, como un líder en la industria editorial automotriz a nivel nacional en Estados Unidos y otros territorios internacionales. Marco se graduó de la Universidad de Miami, además de haber realizado estudios y cursos en otras universidades e instituciones. En el área de negocio ha fundado varias empresas y creado varios proyectos multinacionales en el área editorial y del entretenimiento. Como escritor, la meta número uno de Marco Carvajal es lograr transmitir información sobre automóviles fácil de entender para los lectores, en un idioma sencillo, los más detallada posible. Además de lograr mostrar un lado diferente e innovador sobre la información y características de cada auto, principalmente orientado a lo cotidiano, a lo que cada persona puede aprender sobre cada automóvil, pensando en la vida diaria, en el uso de cada auto en la vida práctica.
Comments are closed.