Volvo Cars
Home » News » Volvo Cars reports record six-month performance in H1 2021

Volvo Cars reports record six-month performance in H1 2021

posted in: News, Volvo 0

Volvo Cars today reported the best half-year results in terms of sales and operating profit in its 94-year history amid increasing demand for its cars across all regions.

The half-year financial report showed the company achieved a revenue of 141 billion SEK, up 26 per cent, driven by strong demand and positive mix effects. Operating income was 13 billion SEK in the first six months of 2021, representing an operating margin of 9.4 per cent.

Sales volumes rebounded 41 per cent compared to the pandemic-affected period in 2020, but the company also saw strong growth of 12 per cent compared to the first six months of 2019, a more relevant comparison without the pandemic disruption. The 12-month rolling sales volume is approximately 775,000 cars, just shy of the 800,000 target set 10 years ago.

“The company continued to grow strongly despite the industry-wide semiconductor shortage, but more importantly, we demonstrated that we are a leader of the ongoing transformation in the automotive industry,” said Håkan Samuelsson, chief executive of Volvo Cars.

Volvo Cars
XC40 R-Design expression, in Crystal White Pearl

Volvo Cars aims to become the fastest transforming company in the sector and to be fully electric by 2030.

The appeal of Volvo’s electric cars was demonstrated in the first half by the demand for its Recharge models. Sales of both its fully electric and plug-in hybrid cars grew significantly, now making up 25 per cent of the global volume. This is the highest electrification share as a proportion of total sales among traditional car makers.

As part of the move towards full electrification, the company launched the second all-electric Volvo C40 Recharge. At the same time, they have strengthened their online sales strategy to meet changing consumer behavior. From now on, all fully electric models will be available exclusively through volvocars.com, and customers can order at their place of preference; from their home, at a Volvo studio, or together with a retailer. 

Securing sustainable batteries is key for Volvo Cars’ transformation. The company is therefore planning to join forces with Northvolt as a strategic partner for joint development and manufacturing of next generation battery cells.

To ensure focus on electrification, Volvo Cars is carving out its internal combustion engine operations into a new unit, Aurobay, in which Geely Holding will be a main shareholder. Through Aurobay, Volvo Cars will realise synergies as well as secure a supply of competitive combustion engines for its hybrid powertrains until the company is fully electric.

“Volvo Cars has a decade-long track record of successful transformation. The car industry is changing more than ever, and we have a strong determination to be the fastest transformer,” said Håkan Samuelsson.

In May, the Board announced that it is evaluating a possible initial public offering (IPO) on Nasdaq Stockholm. The evaluation process continues.

Looking at the remaining half year, Volvo Cars reiterates its full-year outlook. Unless supply of semiconductors improves, the company expects flat sales and revenue for the second half year, compared with the same period last year, despite strong customer demand.

Follow Daryna:
Darina Logvinova is an expert on travel and automotive journalism. She enthusiastically shares her experiences through her journalistic work, writing about international travel, cars, performing arts, and news in general. Darina's work can be found in several international publications. Hello! I'm Darina Logvinova. My life is full of interesting events. And I want to share this with you. My passion is to travel. Perhaps there is nothing more surprising and impressive than discovering new countries, new cultures, cities, uniquely beautiful places. Travel is life. This is what always gives strength, energy, and desire to go forward. It's so hard to wake up early for work, but it's so easy - to the airport or to the train =) I am also a fan of psychology. I believe that it is impossible to have a harmonious relationship with yourself and with the people around you, without understanding anything about our inner world. Many world-famous authors set out their thoughts in books, they are very smart and talented people who share their knowledge and experience. There is nothing easier than buying a book and learning something new from the geniuses of psychology. Our feelings and emotions are very multifaceted. We all perceive the world in different ways and we need to be able to respect and understand this. Everything that we wish will certainly come true, you need to be able to dream about it correctly. The universe does not limit anyone. It is full of supplies for each of us. Psychology is a very important science for humanity. The more the world develops, the more people understand this. The more we are tolerant to ourselves and to all people, the more good there will be in our lives and in the whole world. Development is the driving force behind humanity. We simply cannot afford to stand still, otherwise, our life loses all meaning. Every day, discovering something new for ourselves, we move forward towards our goals.
Comments are closed.