Volvo Car Group (VOLCARb) said on Wednesday its sales had decreased 20.2% in January due to the global sector-wide supply chain constraints and semiconductor shortage. Still, demand for its products has remained robust.
Volvo’s global sales dropped to 47,561 vehicles in January, as sales in Europe plunged 24.8% year-on-year and those in the United States slumped 12.8% year-on-year.
Although production has been improving gradually, retail vehicle deliveries remained held back “due to an increase of cars in transit,” Volvo said.
“The supply situation continues to ease, but component shortages will remain a constraining factor for Volvo Cars and the auto industry,” the company said in a statement.
The Swedish auto maker is scheduled to report fourth-quarter results on February 11th.
As of 11:10 GMT on Thursday the shares of Volvo Car AB (VOLCARb) were retreating 2.25% (SEK 1.62) on the day to trade at SEK 70.38 in Stockholm.