Volvo Cars sales declined in January due to chip shortage

Volvo Car Group’s sales declined 20.2% in January due to the global component shortage.

Nevertheless, the demand for automaker’s products remained strong.

Volvo warned last year that the chip shortage would continue to exist in 2022.

The automaker said that while production had continued to improve gradually, retail deliveries were held back because of an increase of cars in transit.

“The supply situation continues to ease, but component shortages will remain a constraining factor for Volvo Cars and the auto industry,” the automaker said.

Global sales at the automaker declined to 47,561 cars in January, with sales in Europe declining 24.8% while they dropped 12.8% in the United States.

The automaker is set to report quarterly results by 11 February.