Geely-owned Volvo Cars getting China benefit, says GlobalData

Following the news that Geely-owned Volvo Cars’ global sales total was 208,479 for the first five months of this year, down just 25% on last year;

David Leggett, Automotive Analyst at GlobalData, a leading data and analytics company, offers his view:

“Volvo Cars has a balanced spread of sales around the globe and that is helping it weather the ongoing COVID-19 storm.

“In particular, the sharp rebound of sales in China is helping the Swedish premium brand and offsetting lower sales in Europe and North America.

“China sales in May reached 15,132 cars, up an impressive 21.8% compared with the same month last year. In the first five months of the year its sales in China declined by just 7.1% over the same period last year.

“High margin SUVs also now make up almost two thirds of the brand’s sales, and while still not a big part of overall volume, what Volvo now terms its ‘Recharge’ models (Plug-in Hybrid Electric Vehicles and full Battery Electric Vehicles) have been rising as a percentage of overall volume.This bodes well for an electrified future.

“Thanks to its parent firm’s apparently deep pockets and a growing presence in China, as well as technology sharing within Geely Group, this modestly sized car maker is performing well currently, especially when measured against its larger German premium brand rivals.”

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