Volvo Cars battled past Covid-19 challenges and how. The company reported its best-ever second half performance in 2020 with profit and sales volumes rising significantly with the bulk of the credit being given to the reception to its Recharge line-up of chargeable cars.
In a press statement issued on Thursday, Volvo Cars reported a revenue of 151 billion Swedish Krona (SEK) and an operating profit of 9.5 billion SEK in the final six months of the year gone by. The company further informed that profifts rose by 8.2% and that revenues were up 4.9%. "The profit margin came in at a strong 6.3 per cent," the statement informed.
(Also read: Volvo working to convert hometown into emission-free, climate-neutral city)
In all, the company sold 391,751 cars globally in the second half of 2020, up by 7.4% from figures in the same time frame in 2019. For the full year 2020, Volvo Cars reported revenue of 263 billion SEK and an operating profit of 8.5 billion SEK.
Admitting that Covid-19 had posed a massive challenge, company officials state a quick plan of action helped catapult sales. "We acted decisively to limit the impact of the pandemic," said Hakan Samuelsson, Chief Executive at Volvo Cars. “After a safe restart of our operations, we recovered strongly and reported the best second half in the company’s history. It is also promising to see the fast-growing demand for our Recharge line-up of chargeable cars, which we expect to continue in 2021."
China and the US remained the two most significant individual markets for the car maker which made up for a sluggish performance in the second half of last year in the European markets.
Looking forward, Volvo Cars expect the upward trajectory to be maintained and states that a strong product lineup backed by robust online sales will power the path ahead.