Volvo warns China shutdowns will impact third quarter sales

Volvo Cars has warned COVID-19 lockdowns in China could hamper its delivery of electric and plug-in hybrid vehicles in the third quarter.

The Swedish carmaker pointed to a shortage of components as a reason for sales in June falling 27 percent compared to the same month last year.

However, the automaker is starting “to see a marked improvement in its manufacturing situation, with the number of cars produced in June being the highest in the year,” according to a statement.

The development marks the latest supply-chain issue to grip the global auto industry.

Last week saw Tesla cite factory shutdowns in Shanghai as a reason for disappointing car deliveries while General Motors issued a profit warning amid a backlog of 95,000 vehicles that can’t be sold until semiconductors arrive to finish assembly.

Volvo said its half-year global sales fell 24 percent to 291,301 cars.

The company, which wants half of its sales to come from full-electric cars by 2025, said battery-driven models accounted for 7.6 percent its worldwide sales after six months.