Volvo brand reaps momentum generated by an all new lineup of award-winning models, generating growth when most markets saw stagnating sales.
Volvo Cars reports a record revenue for the first six months of 2019 of SEK130.1 billion (approx. $19 billion), up from SEK122.9 billion (approx. $18 billion) year-on-year and buoyed by the best first half-year sales performance in the company's history.
Award-winning models like the XC90 have generated momentum for the Volvo brand For the first six months, sales amounted to a record 340,286 cars, a year-on-year increase of 7.3%. During the period, Volvo Cars also grew consistently faster than the overall market.
The company has gained market share across the US, China and Europe, with the U.K. and Germany recording a growth of 30% and 32% respectively. The overall passenger car market in the US declined by 2.0% in first half, while China and Europe fell by 9.3% and 3.1% respectively during the same period.
Hakan Samuelsson, President and Chief Executive, emphasised that the company has prioritised growth and market share during the period, capitalising on the building momentum for the Volvo brand generated by an all new lineup of award-winning models.
Volvo Cars has initiated additional cost measures within the company on top of already planned measures, which combined, aim to lower fixed costs by SEK2 billion (approx. $0.29 billion). These actions will come into effect in the second half of the year and running into the first half of 2020.
For the remainder of the year, Volvo Cars expects continued growth in sales and revenue, boosted by continued strong demand for the fully renewed product portfolio as well as increased production capacity.
Market conditions are expected to put continued pressure on margins, but the combination of volume growth and cost saving measures is expected to result in a stengthened profit in the second half of the year compared with the same period last year.