For the first half of 2020, global sales were down 21%, as the world was hit by the corona virus. The second half of the year things recovered to the tune of 7% compared to 2021, to end up with a more than creditable -6%.
The XC40 was the most improved in terms of sales volume, +33%. The XC60 is still the biggest selling model, but only just. Regionally, China grew 8% and took a quarter of the total sales for the company while Europe was -15%.
2021 is for now looking most uncertain as the virus produces another wave of infections. Making any prediction would be impossible but Volvo are making the most of a bad situation.
Data source: Volvo Group.
The scariest thing is: Volvo did not present anything this year, while the novelty electric drivetrains are not yet widely available.
ReplyDeleteI does not have a substantial home market (while its "adopted" homes (Belgium, China, Netherlands) are not known for brand loyalty).
In the meantime, Jaguar is bleeding parts for constantly updating its quite modern model range, but the sales still fall behind.
The Pound lost some 25-30% since the start of the Brexit process. I recall from my research in 2015, that most premium brands had a very tight margin to go below the offers of others, so JLR's margin should be quite substantial. But I failed to see the corresponding sales success for JLR this year...
Volvo now have another 'home' market in China as they are owned by Geely.
ReplyDeleteAs for JLR, LR is the more profitable while Jaguar hasn't been so much. The company doesn't split profit to let us know for sure. JLR was making enough profit in China not to worry so much elsewhere as volume was pushed. China is no longer the goose that laid the golden egg so I think JLR is allowing sales to fall (Jaguar in particular) so as to improve its profitability.
One big question, is the division of development costs. Premium brands usually feature more innovation, hence higher development costs. Yet many of these innovations will find their way to cheaper cars in time. An ABS, a park assist or a radar based active breaking once a privilige of an S klass, is now available in a Ford Fiesta.
DeleteFor the profitability, I wonder how innovation costs are represented within JLR in profitability btw J and LR.
Saab or Volvo was loss making but developed a lot of tech for GM / Ford respectively. Now that they are gone, not just their loss making is gone, but also their innovation.
So reducing Jag might actually mean reducing innovation of the group.