Sweden-based Volvo Cars on Wednesday reported a slump in November sales, continuing a decline this year amid pressure from trade tariffs and subdued demand in the United States.
Volvo Cars, which is majority-owned by China’s Geely Holding, said in a statement it sold 60,244 cars in November, a 10 per cent drop from a year earlier, taking its year-to-date volume decline to 8 per cent.
“November’s sales figures highlight the ongoing structural and transformational challenges affecting both Volvo Cars and the broader industry,” Chief Commercial Officer Erik Severinson said in a statement.
The group, which is targeting a long-term operating profit margin of more than 8 per cent as part of a recent strategy overhaul, said sales of fully electric cars rose 4 per cent year-on-year to account for 24 per cent of the overall volume.
Sales of electrified cars as a whole, also including plug-in hybrids, were down 5 per cent to account for 50 per cent of total sales volumes.
Volvo Cars did not provide a regional breakdown of demand, but said US sales remained subdued following the country’s phase-out of electric vehicle tax credits.
Shares in the company were down 1.9 per cent at 0918 GMT, but are up almost 35 per cent year-to-date.
