Volvo car sales have increased by 14 percent in the first half of 2018 setting a new company record. The key regions for the car manufacturer are Europe, the United States, and China which has people worrying that the trade war will affect sales for the second half of the year.
Volvo set a new sales record last year and is on track to beat that record in 2018.
Total sales have increased by 14 percent since last year with the largest increase in the United States. Volvo’s SUV is responsible for most of that revenue.
Things are looking good for now, but the US-China trade war could potentially hurt the company during the second half of 2018.
Chinese owned Swedish car manufacturer Volvo Cars released a sales report for the first half of 2018, and the numbers are impressive. In 2017, Volvo Cars sold a total of 571,577 non-commercial vehicles and so far in 2018, Volvo has already sold 317,639 vehicles, marking a 14 percent increase since the same time last year.
The largest increase in sales came from the American market where the two best-selling SUVs XC60 and XC90 represented a majority of the sales. In total, the market grew by 36.9 percent.
In China, sales grew by 18.5 percent compared to last year, driven by an increased demand for the locally-produced XC90 and the hybrid S90.
Meanwhile, the European market has grown by 5.7 percent in the first half of 2018. The demand in Europe was also mostly influenced by the XC60 as well as the new smaller SUV XC40.
A Trade War is Looming in the Background
On Friday, the latest tariffs between China and the United States will be introduced and by the looks of it, Volvo will be deeply affected. Most of Volvo Cars’ production is done in Sweden and China, two regions that have been targeted by American car tariffs. The Trump administration’s plan with the tariffs is to create leverage for American car manufacturers such as Ford, Chevron, Tesla, and General Motors.
Additionally, Volvo Cars recently opened a new factory in South Carolina but the future of the production in the United States may be threatened.
At this moment, Volvo is on track to set a new yearly sales record in 2018 unless the trade war puts a stop to that.