Swedish carmaker Volvo, owned by China’s Geely, expects a tough 2013 as it said the company’s sales fell 6.1 percent last year, including double-digit drops in China and Sweden and a small rise in the US.
Volvo is the biggest Chinese overseas investment in the auto industry and the Swedish company is pinning its growth hopes on China. Overall sales fell last year to 421,951 cars from 2011’s 449,255, the group said in a statement on 7 January 2013.
“Competition in the car industry will most likely continue to be as fierce as in 2012 as manufacturers will seek to capture volumes and market share in a market where the economic situation will remain unstable,” it said, expecting a challenging year in terms of margins and growth.
The company said several markets last year saw improvements, particularly emerging and overseas markets, but the economic situation in mature markets and regions hit demand.