Volvo AG has reported net sales growth of 3pc to SEK94bn ($11.13bn) in Q1 2021 compared to SEK91.4bn in the prior-year quarter.
Sales of construction equipment rose by 23pc to SEK24.7bn compared to SEK20.14bn during Q12020. Truck sales were up 1pc to SEK58.4bn from SEK58bn, and sales of Volvo Penta grew by 2pc to SEK3.4bn from SEK3.3bn during the same period in review.
The company reported a 31pc decline in bus sales for Q12021 at SEK3.5bn from SEK5.2bn in the same quarter last year.
Volvo’s net order intake of trucks more than doubled in the first quarter to 85,461 units worldwide. The USA was the biggest buyer of heavy-, medium- and light-duty vehicles during the quarter surging by 369pc to 22,215 units from 4,732 units last year. Orders from Europe climbed by 120pc to 46,546 units in Q1 2021 from 21,178 units during the prior-year quarter.
Truck order deliveries for the company increased by 17pc this quarter to 52,444 units worldwide against 44,765 trucks in Q1 2020.
Net order intakes for construction equipment grew by 73pc in this quarter at 35,616 units from 20,614 units in the same quarter last year. The company received the highest number of orders from South America and Asia at 1,324 units and 22,038 units, respectively. These numbers are 121pc and 66pc higher than Q12020.
Car sales surges
Volvo Cars’ total sales in the first quarter of 2021 rose by 41pc to 185,698 units from 131,889 units during the prior-year quarter. Global car sales in March increased by 62.3pc to 75,315 units compared to the same month last year.
The company’s electric vehicle sales under the Recharge lineup segment tripled last quarter compared to Q1 2020. Sales of these models rose 22pc from Q42020. Europe’s share of overall sales for the Recharge lineup grew by 39pc, while global sales accounted for 26pc in Q12021.
Car sales in China surged 118pc to 45,242 units in Q1 2021 from 20,780 cars during the same three-month period last year. In the US, Volvo’s sales increased by 40pc to 27,239 cars and were up by 24pc to 87,457 units in Europe during the same period.
The company cited in an Apr 8 statement that car sales across all regions recovered from COVID-19 induced production losses. Overall UK and Sweden showed strong sales even though the company had to halt production partially in the fallout of the ongoing semiconductor chip shortage.
Volvo attributed its 7.1pc increase in net operating income SEK11.8bn to increased sales volumes and lower costs. The vehicle manufacturer estimates a further rise in demand for transport and infrastructure equipment for the rest of the year.
($1=SEK8.44)