Volvo reports best profit and sales performance in 2020

Volvo announced its best-ever second-half profit and sales numbers in 2020, a welcome boost to any company during a pandemic.

According to Motorpress, the company reported revenue of 151-billion SEK (R267-billion) and an operating profit of 9.5-billion SEK (R16.8-billion) for the second six months of 2020.

Profits increased by 8.2% during the period, while revenues were up by 4.9%. The profit margin came in at a strong 6.3%.

Sales were driven by the demand for Volvo’s recharge line-up of Electric Vehicles. 391,751 cars were sold in the second six months of 2020, an increase of 7.4% compared to the same period in 2019.

For the full year 2020, Volvo Cars reported revenue of 263 billion SEK (R465 billion) and an operating profit of 8.5 billion SEK (R15 billion).

In Europe, sales of plug-in hybrids represented 30% of total volumes, making Volvo the leading plug-in premium brand. In the US, Volvo is also a leading plug-in hybrid brand in the market.

In China and the United States, its two largest individual markets, the company reported growing sales for the full year. In Europe, it reported a small second-half decline due to a sluggish overall market.

During 2020, Volvo Cars saw an accelerated move in online sales as a result of the pandemic, a development that the company expects to continue in 2021.

For 2021, the company anticipates continued growth in sales volume and revenue, as we benefit from a strong product offering and further increases in online sales.

With ongoing investments in new technologies and new products, the company foresees a similar level of capital expenditure as in 2020. It also expects a continued reduction in all CO2 emissions cars, in line with the company’s ambition to reduce these by 40% by 2025.

Picture: Motorpress