The Swedish company Volvo Cars announced its return to profit during the first half of the year, supported by the demand for electric cars, which pushed its profits to volatilize, exceeding pre-epidemic levels, which increases the company’s strength ahead of its possible public offering, especially after its recent deal with its parent company. Read more [Volvo Fully Acquires The Geely Business In China].
Volvo, a subsidiary of China’s Geely, announced that its first-half profit amounted to 13.24 billion Swedish kronor ($1.52 billion), more than doubling compared to the same period in 2019 before the outbreak of the epidemic, when profits amounted to 5.52 billion kronor.
Like other automaker, Volvo was forced to reduce its production volume due to the global shortage of semiconductors, but it said that the market’s recovery from the recession experienced during the past year contributed to raising revenues during the first half by 26% to reach 141 billion kroner, and the company’s sales of cars increased by 41% to 380,757 cars.
Volvo, which is preparing for an initial public offering before the end of this year, indicated that its business has grown in all its markets around the world, with sales of its rechargeable vehicles accounting for about 25% of total sales, knowing that it was severely affected at the beginning of the epidemic, where Volvo lost $989 million during the first half of 2020.
The company said it would maintain its sales and revenue growth outlook for the second half year-on-year “unless semiconductor supply chains improve,” Volvo said.
Volvo aims to be a fully electric car maker by 2030 as well as sell 600,000 batteries for electric vehicles by 2025 and build a giant European battery factory in 2026.