Volvo closes the first half of the year with double-digit sales growth image

The Chinese-owned Swedish premium brand has been on fast sales pace this year and June brought another double-digit increase.

Volvo is definitely on the right track for now to hit its initially plan of selling 800,000 cars by 2020, as the brand posted a 10.5 percent increase to 256,563 cars for the first six months of the year, with June bringing a similar growth rate to a total of 51,431 units, marking the 13th consecutive month of global retail sales. Pushed by strong performance of its XC60 crossover on markets such as Sweden, Germany, the UK and France, Volvo reported 138,851 cars sold in Europe for the period. On the other hand, the new XC90 SUV contributed to the revival path in the United States, as the company’s deliveries jumped by 25 percent to 36,654 vehicles so far, emerging as the largest region for the month.

China remained however Volvo’s biggest worldwide market in the first half with 40,688 cars sold, an increase of 6.3 percent year-on-year, driven by growing demand for the XC90 as well as the locally produced XC60 and S60L sedan. Globally, the XC60 was the best-selling model in the first six months of 2016 with 73,817 units sold followed by the V40/V40 Cross Country with 48,670 sold cars and XC90 with 43,911 SUVs.

After the automaker managed to turn to profit in the first quarter, it said it expected its full year net revenue and operating income to keep growing this year, targeting also to close the margins-gap to its premium rivals.