Bengaluru — Sweden-based Volvo Cars on Wednesday reported a slump in November sales, continuing a decline this year in a challenging market and subdued demand in the US.
Volvo Cars, majority-owned by China’s Zhejiang Geely Holding, said in a statement it sold 60,244 cars in November, a 10% drop from a year earlier (66,977), taking its year-to-date volume decline to 8%.
“November’s sales figures highlight the ongoing structural and transformational challenges affecting both Volvo Cars and the broader industry,” chief commercial officer Erik Severinson said in a statement.
The group, which is targeting a long-term operating profit margin of more than 8% as part of a recent strategy overhaul, said sales of fully electric cars rose 4% year on year to account for 24% of the overall volume.
Sales of electrified cars as a whole, also including plug-in hybrids, were down 5% to account for 50% of total sales volumes.
Volvo Cars did not provide a regional breakdown of demand but said US sales remained subdued following the country’s phase-out of electric vehicle tax credits.
Shares in the company were down 1.9% at 9.18am GMT but are up almost 35% year-to-date.
Reuters
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