Volvo achieves record profit in 2021, sold 698,700 cars –

Volvo Cars has done it again, setting an all-time sales record by selling 698,700 cars in 2021. That is a healthy 6% year-on-year increase (it sold 661,713 cars globally in 2020), with growth observed in most markets.

In Europe, the Swedish automaker sold around 293,500 vehicles, representing a 2% increase from the year before. It also delivered 171,700 cars in China (up 3% Y-o-Y; still its biggest single market), while the US saw a healthy 11% growth with roughly 122,200 cars sold. Other markets saw a cumulative on-year growth of 15% with 111,400 deliveries.

Out of nearly 700k cars it sold globally, 27% or 189,200 were chargeable vehicles (PHEVs and EVs combined). EVs make up 4% of the pie with approximately 25,700 deliveries.

The best-selling Volvo model is once again the XC60, with 215,600 units sold worldwide. That’s a 12% increase in volume over the previous year. This is followed by the XC40 (176,500 units), XC90 (108,200 units), V60 (56,100 units), S60 (49,300 units) and S90 (46,600 units).

Its 2021 revenue amounted to SEK282 billion (RM127 billion), up 7% from SEK262.8 billion (RM118.3 billion) in 2020. Operating income increased to SEK20.3 billion (RM9.1 billion) for the year, resulting in an EBIT margin of 7.2% – operating income was SEK8.2 billion (RM3.69 billion) in 2020, while the EBIT margin was 3.2%.

Company CEO Hakan Samuelsson said: “2021 was a year to be proud of for Volvo Cars. Despite persistent component supply shortages in the auto industry, we increased market share globally and delivered all-time high revenue and profitability.” Samuelsson, who has been the CEO for Volvo Cars since 2012, will be succeeded by Jim Rowan (current CEO for Ember Technologies and former Dyson Group CEO) on March 21.

Moving forward, Volvo Cars will increase the annual production capacity for electric vehicles to 150,000 units for 2022, and expects this to help double its EV sales volume compared to 2021. Despite supply shortages, demand for its cars remain strong. At the rate it’s going, 2022 looks to be another record-setting year in terms of sales.

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