Volvo global sales rise 20% in 2011 as China and US drive growth
Volvo Car Corporation sold 449,255 vehicles worldwide in 2011, with sales in China surging 54% and the US and Europe also posting double-digit gains.
Volvo Car Corporation reported a 20% jump in global sales for 2011, delivering 449,255 vehicles as demand surged in China and North America. The Swedish manufacturer, now owned by Geely, saw its strongest growth in China, where sales grew 54.4% year-on-year. The US market also posted a healthy 22.5% rise, while European sales increased by about 13%.
China and US lead Volvo's global gains
China has rapidly become Volvo's fastest-growing market. The company is targeting around 200,000 annual sales in China by 2015 and is building a new plant in Chengdu to support this expansion. In the US, which remains Volvo's single largest market, the sales rebound in 2011 was described by company executives as crucial to the brand’s global ambitions.
Volvo’s European performance was solid, with the region accounting for a large share of total volume. The company’s low-CO2 DRIVe models continued to attract buyers in markets where emissions-based taxes and incentives are in place. The XC-range, led by the XC60 crossover, made up about 36% of Volvo’s global sales, underlining the strength of demand for SUVs and crossovers in Europe and beyond.
Strong model mix and marketing push
The growth in 2011 was driven by strong demand for Volvo’s 60-series models, the S60 saloon and V60 estate, alongside the XC60. These vehicles accounted for a major share of the company’s volume, reflecting a shift in customer preferences towards premium mid-size cars and crossovers. Volvo also reported that its low-emission DRIVe variants were particularly successful in Europe.
- 60-series (S60, V60) and XC60 were top sellers.
- XC-range represented 36% of global sales.
- DRIVe low-CO2 models performed strongly in Europe.
To support its global growth, Volvo increased its advertising spend to $42.5 million for January to September 2011, up from $31 million in 2010. The company’s marketing efforts focused on raising brand awareness in key growth markets, with executives expressing hope that this momentum would carry into 2012.
Geely ownership and manufacturing plans
Volvo’s performance in 2011 came a year after its acquisition by China’s Geely. The company is investing in new capacity to meet ambitious sales targets, particularly in China, where the Chengdu plant will supplement existing European factories in Sweden and Belgium. This expansion is central to Volvo’s plan to establish itself as a global premium brand.
