STOCKHOLM -- Volvo Car sales fell 20 percent to 47,561 in January under pressure from the global component shortage, though demand for its products remained strong, the automaker said.
Sales in Europe dropping 25 percent while they fell 13 percent in the U.S., the automaker said Wednesday in a statement.
Volvo, which has been heavily impacted by sector-wide supply-chain constraints and semiconductor shortages, warned last year that the chip shortage would continue into 2022.
The Swedish company said that while production had continued to improve gradually, retail deliveries were held back "due to 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," Volvo said in the statement.
Volvo said the XC60 was its best-selling model last month, followed by the XC40 and the XC90.
Volvo, which is majority owned by China's Geely Holding, listed on Nasdaq Stockholm in October after wrapping up Europe's biggest initial public offering of the year.
The brand is due to post fourth-quarter results on Feb. 11.