Following the news that Geely-owned Volvo Cars has reported its first half financial results have been severely dented – including an operating loss of 989 million SEK – due to the impact of the COVID-19 crisis, but expects its business to recover in the second half of the year;
David Leggett, Automotive Analyst at GlobalData, a leading data and analytics company, offers his view:
“Volvo Cars is relatively well-positioned in two main performance aspects – sales in China and sales of electrified vehicles.
“China is leading the global vehicle market recovery this year – it was first in and first out from the COVID-19 crisis.
“Volvo returned to sales growth in China in the second quarter and made up much of the ground lost in the first quarter. It recorded an overall China sales drop of only 3.0% in the first half, in the context of an overall China passenger car market decline of 26.0%.
“It is performing well there and is well-placed to benefit from continuing market recovery in the second half of the year. GlobalData forecasts that China’s light vehicle market will turn out just 10.6% down in 2020 at around 22 million units, with an improving demand trend lifting sales prospects for manufacturers such as Volvo.
“Volvo also saw a first half increase, of 79.8% in demand for its chargeable plug-in hybrid models sold under the Volvo Recharge brand – another very positive development that augurs well for the company’s future performance.”