Volvo Cars reports a 25% sales drop in April owing to supply chain crisis
Swedish luxury carmaker Volvo announced that it has sold 47,150 units in April this year, registering a 24.8 per cent decline as compared to the same month last year. The automaker also claimed that it recorded sales of 195,445 units of cars between January-April this year, registering 21.3 per cent growth as compared to the same period last year.
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Volvo Cars also claimed that its electrified Recharge models registered an 18.7 per cent growth. The automaker said that its electrified Recharge models contributed 38.4 per cent to the total sales of the automaker. The auto company also said that fully electric cars of the brand contributed 10 per cent of the total sales.
Volvo's top-selling model in April 2022 was the XC60 SUV, which sold 14,952 units. The sales declined as compared to 17,925 units registered in the same month a year ago. Volvo XC40 and the XC90 were in second and third positions in terms of sales volume from the brand. Volvo XC40 sold 13,876 units last month, as compared to 19,833) units sold in April 2021, while the Volvo XC90 sold 8,208 units, as compared to 9,371 units recorded in the same month a year ago.
The automaker has said that its sales have been impacted by the supply chain crisis that has been intensified by the ongoing Russia and Ukraine war. The semiconductor crisis has been forcing the automakers to realign their production, eventually impacting sales. Volvo too is not out of this situation. However, the luxury car brand considers this a temporary setback. Volvo believes the supply chain crisis due to the semiconductor shortage is expected to resolve in the second half of this year.