July sales continued to be affected by supply constraints being carried over from previous months due to Covid-related lockdowns in China. This particularly affected retail deliveries of Recharge cars during the month and is expected to continue to affect its retail sales into the current quarter.

Recharge cars accounted for 21.5 per cent of sales in July. The share of fully electric vehicles stood at 3.5 per cent. For the full year 2022, the target remains of having a double-digit share of fully electric cars.

As communicated recently, (https://www.media.volvocars.com/global/en-gb/media/pressreleases/302983/volvo-cars-second-quarter-2022-steady-earnings-in-a-turbulent-world) Volvo Cars continues to see a marked improvement in the stabilisation of its supply chain, with July confirming the positive trend in production as seen already in June. Provided this normalisation continues, the company expects production to progressively increase in the coming months.

On the back of this expected improvement, the company anticipates retail sales to be flat or slightly lower for the full year 2022, compared with volumes in 2021.

European sales for July reached 15,893, down 29.1 per cent compared with the same month last year. Sales of Recharge cars accounted for 39.9 per cent of the total sales in the region during the month.

Volvo Cars' US sales for the month reached 8,686 cars, down 40.7 per cent compared with July last year, with Recharge models making up 14 per cent of the total sales.

China sales went up by 6.4 per cent in July to 15,487 cars compared to the same month last year.

Volvo Cars' top selling model for the month was the XC60 with sales of 16,261 cars (2021: 19,132 units), followed by the XC40 at 10,640 cars (2021: 15,097) and the XC90 at 7,764 cars (2021: 9,694 units).

January- July
July
2022 2021 Change 2022 2021 Change

Europe 15,893 22,408 -29.1% 135,663 189,230 -28.3%
Recharge 6,344 9,663 -34.3% 64,890 77,833 -16.6%
- Plug-in hybrid 5,350 8,531 -37.3% 50,842 69,523 -26.9%
- Fully electric 994 1,132 -12.2% 14,048 8,310 69.0%

China 15,487 14,550 6.4% 85,720 109,802 -21.9%
Recharge 815 1,112 -26.7% 5,857 5,245 11.7%
- Plug-in hybrid 473 1,074 -56.0% 4,629 4,924 -6.0%
- Fully electric 342 38 800.0% 1,228 321 282.6%

US 6,868 11,575 -40.7% 57,453 75,329 -23.7%
Recharge 961 2,275 -57.8% 16,866 12,349 36.6%
- Plug-in hybrid 867 1,374 -36.9% 12,961 9,122 42.1%
- Fully electric 94 901 -89.6% 3,905 3,227 21.0%

Other 6,416 8,350 -23.2% 57,129 63,279 -9.7%
Recharge 1,476 1,475 0.1% 15,944 12,893 23.7%
- Plug-in hybrid 1,323 1,411 -6.2% 11,322 12,606 -10.2%
- Fully electric 153 64 139.1% 4,622 287 1510.5%

Total 44,664 56,883 -21.5% 335,965 437,640 -23.2%
Recharge 9,596 14,525 -33.9% 103,557 108,320 -4.4%
- Plug-in hybrid 8,013 12,390 -35.3% 79,754 96,175 -17.1%
- Fully electric 1,583 2,135 -25.9% 23,803 12,145 96.0%