SWEDEN’S Volvo Cars reported today a strong rise in net profit last year, with record revenue and electric car sales more than doubling.

Like other automakers, Volvo Cars faced supply chain problems, Covid lockdowns in China and higher costs amid soaring inflation.

But its net profit rose by almost 20% to 17 billion Swedish kronor (RM6.9 billion) last year.

Revenue climbed by 17% to a record 330 billion kronor.

Electric cars accounted for 11% of sales last year, compared to 4% in 2021.

“We managed through the heavy turbulence of the year and made significant progress on our strategic ambitions in 2022,” said chief executive Jim Rowan.

“We accelerated towards our aim to become a fully electric car company by the end of the decade and climate neutral by 2040.”

The company’s annual revenue and profits exceeded forecasts by analysts polled by financial data firm FactSet.

Volvo Cars is majority-owned by Chinese carmaker Geely.

“While 2023 looks to be another challenging year, the company is hopeful that the Covid-related supply shortages from China are behind it and that it continues to see steady improvement in the supply of semiconductors,” the company said.

China abandoned its zero-Covid policy last December. – AFP, February 9, 2023.