According to a newly released report by Volvo Cars, Swedish carmaker, Volvo Cars experienced a drop in 2020 earnings but the company which is owned by China’s Geely remains optimistic for 2021 after a strong rebound in the second half last year.
According to CEO Hakan Samuelsson, China led the way, followed by the US, and both markets reported growth sales for the full year despite the impact of the coronavirus pandemic.
The report shows a drop of revenue in 2020 of 4 percent to SEK 262 billion and a 19 percent drop in net profit to SEK 9.6 billion. Volvo Cars sold 661,713 vehicles, a 6 percent drop but saw in the second half of 2020 a 44 percent increase in sales compared to the same period the year before. The large increase in sales is the best in the company’s history and produced revenue of SEK 151 billion and a net profit of SEK 9 billion.
Hakan Samuelsson said, noting in particular, the progress made with their line of electric cars, “For 2021, we anticipate continued growth in sales volume and revenue, as we benefit from a strong product offering and further increases in online sales.”
Volvo Cars have set a goal of being exclusively electric by 2030 and intends to move away from traditional internal combustion engines. The company is currently investing in production capacity, notably in its Belgian factory in Ghent. It is also developing the high-end electric brand Polestar.