Volvo Cars posted its best-ever first-half results despite the shortage in semiconductors, as the automotive industry rebounded from last year’s pandemic slump.
A quarter of the vehicles sold by the Geely-owned group were chargeable in the first six months of this year, putting it on track to become a fully electric car company by 2030. This was the highest proportion of total sales among traditional carmakers, the company said.
The group made operating income of SKr13bn ($3.6bn) in the six months to June, reversing last year’s first-half loss, on revenues that rose 26 per cent year on year to SKr141bn due to strong demand.
Compared with the first six months of 2019, the number of cars sold rose 12 per cent to a record 380,757, taking its rolling 12-month total close to 800,000.
Hakan Samuelsson, chief executive of Volvo Cars, predicted that the semiconductor shortage would hold back growth in the remainder of the year and spill over into 2022.
“Unless supply of semiconductors improves, we expect flat sales and revenue growth for the second half year compared with the same period last year, despite strong customer demand,†he said.
The company said it was still evaluating the possibility of an initial public offering in Stockholm this year, which was first announced in May.
Two days earlier, it agreed with Geely that it would buy its parent’s stake in the companies’ joint ventures in China, allowing it to take full ownership of factories and sales operations in the country and potentially boosting the price if the company floats.
