Volvo Reports 21% Growth in First Half of 2017 of Its Car Segment In Global Car Market

Posted on: Oct-2017 | By: MarketDeeper | Automobile

Volvo, the leading player in premium automobile segment reported a growth in its profit by SEK 6.8 Billion, which is around 5,508 Crore in H1 2017 compared to SEK 5.6 Billion in last year. These figures came after it took a market share across Europe and increased sales in China.

In the first six months of 2016, the profit increased to SEK 99.1 Billion from SEK 84.2 Billion. The operational profit ratio augmented from 6.6% to 6.8% in the previous year. The company is investing in technologies and advanced cars in huge numbers. The constant increase in sales in first half of the year signifies that Volvo in cars segment remains on the same path for the fourth successive time. The sales figure of the initial six months boosted by 8.2% compared to last year.

Hakan Samuelsson, president and chief executive, Volvo said, “We have witnessed great profit returns on the grounds of growing investment in transformation, and our impetus will be focused on development.”

Owing to strong growth in various major markets sales was escalating up by 6.6% during the H1 2017 and in the same period, the company took market share in Europe, the Middle East, and Africa.

Coming on to the Asia Pacific region and specifically China, Volvo dominated the market in terms of sales. The sales fueled up by 22.6% of the region and of China, it augmented up to 27.6%.

On the other side in the U.S., Volvo car segment is expected to fuel the growth after the drastic rise in H2 2017. Though the Q1 sales was disturbed due to delivery concerns, in the Q2 the sales growth came back on the track as well as the imminent delivery of the new XC60 midsize SUV is expected to finish it in a positive way.

Samuelsson said, “On the global basis, we anticipate consistency in the growth with the same pace, which it had in H1. We are certain about the growth and believe that it will continue to outperform in another year, respective to sales.”

In this year, Volvo is also in plans to launch its all new XC40, which is its first small premium SUV.