Volvo Car Group achieved its annual sales target following strong sales across Europe and the US allowing a 71% upturn in first-half profit.
The Swedish-based carmaker faces concerns over a decline in car sales in China, the world’s largest car market. Concerns stem from share price uncertainty and the volatile premium car market within the country.
Volvo was purchased in 2010 by China’s Zhejiang Geely Holding Group Co. from Ford Motor Co. and Hakan Samuelsson, Chief Executive at Volvo, told Reuters the company has made changes since the acquisition.
“We have been implementing a transformation plan since 2010 and this financial result demonstrates that we continue to be on the right track,” Samuelsson said according to Reuters.
Samuelsson also told Reuters that Volvo sales are expected to come close to 500,000 cars this year, fuelled by a strong European and US market that will counteract the slowed sales in China.
“We have Europe which is currently in strong growth and we have the US, which is going from a problem situation into growth,” Samuelsson said.
The carmaker’s first-half profits came in at 1.66bn Swedish Krona ($198m) up from the same period last year, which saw 968m Swedish Krona ($118m).
According to Reuters, Samuelsson remains optimistic about the annual sales potential for Volvo.
“For the full year we expect a substantial increase in profits,” Samuelsson said.
In order to meet their 2020 sales target of 800,000 cars, Samuelsson said the carmaker is aiming to meet the needs of China’s premium car market with its range-topping XC90 SUV.