The Swedish multinational automaker Volvo Cars has been blatantly having supply issues for a while, which they have essentially always used as a justification for why demand remains high. With 8,136 vehicles sold in the US during August, Volvo Cars reported an almost 24% drop in sales, according to InsideEVs.
After a roughly 41% sales decrease the previous month, August’s sales represent a significant drop once more. Additionally, the company has now sold 65,589 vehicles this year, nearly 24% less than a year ago.
The apparent decline in car sales proves that the supply shortages with plug-in models, Volvo Recharge, appear to be even worse in recent months.
A total of 1,380 plug-ins were sold last month, which is 30% fewer than a year ago (after a 58% decline in July). Furthermore, 17% of the entire Volvo volume is made up of Volvo Recharge models.
Unfortunately, there is no certainty that the optimism for an improvement later this year would likely materialize, given the current state of the economy.
Volvo plug-in car sales as listed by InsideEVs:
-BEVs: 206 (down 71% year-over-year)
-PHEVs: 1,174 (down 8% year-over-year)
-Total Recharge: 1,380 (down 30% year-over-year)
For the record, Volvo has sold over 18,000 plug-in cars in the US.
Volvo plug-in car sales year-to-date in 2022 according to InsideEVs:
-BEVs: 4,111 (up 4% year-over-year)
-PHEVs: 14,135 (up 36% year-over-year)
-Total Recharge: 18,246 (up 27% year-over-year)
For comparison, Volvo sold more than 22,000 plug-in cars in the US during the first 12 months of 2021. Nonetheless, Volvo has presented a strategy for increasing sales to 1.2 million units yearly while progressively moving toward 100% electric vehicles worldwide by 2030.
On the other hand, it is anticipated that by the middle of the decade, the operating margin will increase to 8–10%.
Notably, only electrified vehicles such as all-electric, mild hybrid, hybrid, or plug-in hybrid are offered in the new 2023 model year lineup in the US. Meanwhile, only two BEVs are available, including the XC40 Recharge and C40 Recharge.
A brand-new, all-electric Volvo vehicle based on a next-generation platform is anticipated to be released soon. Notably, it will also be used by Polestar. In 2023, the anticipated brand-new vehicle should provide Volvo with a crucial BEV boost.
