Volvo Cars’ April sales fall 25% due to China lockdowns, supply chain issues

Sweden-based Volvo Car Group (VOLCARb) said on Wednesday that its vehicle sales had slumped 24.8% in April compared to the same month of 2021, since production was hit by lockdowns in China and supply chain issues worldwide.

Volvo Car Group’s sales in China plunged 47.8% last month, those in the United States dropped 9.2% and those in Europe – by 23.2%.

“In April, Covid-19 lockdowns in eastern China impacted retail deliveries in China and added more challenges to already weakened global supply chains, resulting in additional loss of production,” the auto maker said in a statement.

Still, the company noted that customer demand had remained robust, while the share of fully electric vehicles had increased to 10% in April from 9% in March.

Volvo Cars has said that it seeks sales of fully electric vehicles to reach 50% of its total sales by the middle of the decade.

As of 10:18 GMT on Wednesday the shares of Volvo Car Group (VOLCARb) were edging down 0.21% (SEK 0.16) on the day to trade at SEK 77.59 in Stockholm.