Volvo Cars cuts sales forecast for 2022, blame it on microchip shortage

Swedish luxury car major Volvo Cars on Tuesday has announced a reduction in its sales volume forecast for the year 2022. The automaker has blamed the ongoing microchip crisis behind the sales volume forecast slash. The car major has said that it expects a marginal growth in deliveries for the year 2022, as compared to 2021. However, Volvo previously speculated a major growth in deliveries in 2022.

By: HT Auto Desk
| Updated on: 23 Mar 2022, 16:12 PM
Follow us on:
Follow us on:
Volvo Cars foresees only a marginal growth in 2022. (Bloomberg)
Volvo Cars foresees only a marginal growth in 2022.

Also Read : Volvo to expand R&D operations in India by setting up 'Vehicle TechLab'

However, the automaker, which has a majority stake owned by China's Geely Holding, said the problems were not related to the ongoing war between Russia and Ukraine. However, the crisis there has resulted in increased costs for the crucial raw materials, energy and freight charges as well. The car brand has said that Volvo Cars will continue to work with pricing to mitigate the effects. Expect the car manufacturer to increase its vehicle pricing in near future.

Back in February this year, Volvo said that supply chain bottlenecks would remain a restraining factor for the automaker, while the component shortage would only gradually improve.

The microchip crisis has been impacting global auto production and sales significantly for more than a year. The latest disruption in terms of the Ukraine-Russia war that has caused severed supply chain disruption would result in lengthening the trouble. Besides that, the war has also resulted in a surging price of crude oil in the international market, a shortage of several critical raw materials and vehicle components that are produced in both Russia and Ukraine. All these factors are likely to impact vehicle production in the longer term.

Also check these Cars

Find more Cars
Volvo S90 (HT Auto photo)
₹ 61.90 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Explore your Vehicle
Volvo Xc40 (HT Auto photo)
₹ 41.25 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Volvo C40 Recharge (HT Auto photo)
₹ 61.25 Lakhs* *Ex-showroom price
Add to compare
Volvo Xc90 (HT Auto photo)
₹ 88.90 - 96.65 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Mahindra Thar (HT Auto photo)
₹ 10.98 - 16.94 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Tata Nexon (HT Auto photo)
₹ 8.10 - 13 Lakhs* *Ex-showroom price
Add to compare
Check latest offers

Not only Volo, but Toyota too has already announced a lowered sales volume expectation for this year, owing to the ongoing supply chain crisis.

First Published Date: 23 Mar 2022, 16:12 PM IST
Shopping Bag Shop Now
74% OFF
Microfiber Car Cleaning Soft Brush Ideal as Mop Duster, Washing Brush with Long Handle, Dust Cleaner Car Wash Brush with Handle, Soft Brush Scratch Free, Cleaning Dashboard Curved Design - Grey
Rs. 389 Rs. 1,499
40% OFF
MelodySusie Portable Electric Nail Drill Professional Cleaner Dust Collection/Lighting 2 in 1 Car Vacuum Cleaner 120W High-Power Handheld Wireless Vacuum Cleaner Home Car Dual-use USB Rechargeable (Black)
Rs. 599 Rs. 999
42% OFF
Boldfit Cycle Pump for Bicycle Portable Air Pump for Cycle and Bike Foot Balloon Pump Machine for Balloon High Pressure Cycle Air Pump for Bicycle, Car, Football Pump, Pump for Cycle Tyre Black
Rs. 349 Rs. 599
SHAYONAM Dent Removal Kit - Powerful Car Dent Repair Kit - Suction Cup Dent Puller Handle Lifter and Dent Repair Puller for Car Body Dent, Glass, Tiles and Mirror (Plastic)
Rs. 399

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
Powered by: Acko Logo
Please be noted that any information provided herein above will be received by Acko General Insurance Limited (“Acko”). By mentioning the above information, you agree to provide these details and information to Acko.
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.