Chip Shortage Continues to Wreak Havoc on Volvo Sales

Volvo Cars said on Monday that car sales in March were down 22% to 58,677 vehicles due to a shortage of a certain semiconductor.

The deficit is projected to affect production throughout the second quarter, according to Volvo, which is majority owned by China’s Geely Holding.

In March, Volvo Cars sold 58,677 cars, a 22.1 percent decrease from the same month the previous year. Customer demand is still high.

Volvo Sales Breakup in March 2022 

As the supply chain limitations impacting Volvo Vehicles and the auto industry relaxed, the number of automobiles sold steadily climbed to a total of 148,295 cars in the first quarter. Volvo Cars is currently facing a brief divergence from that trend due to a disruption caused by a shortage of a certain semiconductor, which is projected to impede production throughout the second quarter.

Sales of Volvo Vehicles’ Recharge models accounted for 35.5 percent of all Volvo cars sold worldwide in March. Fully electric vehicle sales accounted for 9.0 percent of total vehicle sales. Recharge sales accounted for 33.6 percent of overall sales in the first quarter, while fully electric automobiles accounted for 7.9%.

When compared to the same time last year, the number of active users had climbed by 174% by the end of March. Increased client demand, along with a broader offer in more regions, drove this increase.

In March, European Volvo sales decreased 30.4 percent to 26,954 automobiles, with Recharge models accounting for more over half of total European sales. Volvo Cars sold 65,157 cars in Europe in the first quarter, down 25.6 percent from the same period last year.

In March, Volvo sales in China fell by 22.6 percent to 12,378 vehicles. Volvo Cars sold 35,698 cars in China in the first quarter, down 21.1 percent from the same period last year.

In March, 9,428 vehicles were sold in the United States, down 5.0 percent from the same month the previous year. Volvo Cars sold 22,757 cars in the United States in the first quarter of this year, down 16.5% from the same period last year.

The XC60 was the company’s best-selling model in March 2022, with 16,855 units sold (2021: 21,186 units), followed by the XC40 with 17,584 units sold (2021: 23,958 units) and the XC90 with 9,141 units sold (2021: 9,893 units).

Christy Gren
Christy Gren is an Industry Specialist Reporter at Industry Leaders Magazine she enjoys writing about Unicorns, Silicon Valley, Startups, Business Leaders and Innovators. Her articles provide an insight about the Power Players in the field of Technology, Auto, Manufacturing, and F&B.

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