Published : Jan. 15, 2018 - 15:29
Volvo Car Korea, the local importer and distributor of the Swedish automaker, sold a record 6,604 units here in 2017, the company said Monday. But the sales growth has brought about a supply shortage, leading to a rise in consumer complaints.
Led by the popularity of the XC60 midsize sport utility vehicle, the carmaker’s sales rose 26.9 percent year-on-year to 6,604 units in 2017 from 5,206 units in 2016, the company said. This marks the fourth consecutive year that the carmaker has reaped an annual growth of over 20 percent.
A total of 1,555 units of the best-selling XC60 were sold last year, up 70.7 percent on-year, the company said.
Sales of Volvo’s flagship S90 midsize sedan and the XC90 large SUV were 1,377 units and 1,066 units, respectively, accounting for some 40 percent of total annual sales.
Volvo Car Korea’s best-selling model XC60 (Volvo Car Korea)
Amid growing demand and brand recognition in Korea, customer complaints are also escalating due to a supply shortage of the XC60 SUVs.
Some 320 people have approved a post on the Blue House petition website demanding the government ban sales of Volvo cars and accusing it of unfair and irresponsible management.
The post says that the carmaker had sold XC60 SUVs without securing sufficient supply and that the XC60 D5 introduced as an alternative to the XC60 D4 has not yet received government approval for sale.
Customers who signed contracts to purchase the D4 diesel model in October last year are expected to receive their vehicles between April and June this year, the company said.
Drivers who buy the XC60 this month are expected to receive the vehicle by around July.
Volvo Car Korea delivered 369 units of XC60 SUVs between October and December last year, the company said. This month it is expected to deliver 210 units, which leaves the carmaker with 1,900 units.
“We had initially estimated monthly sales of the XC60 to reach a maximum 200 units. But over 1,500 units were sold in the first two months of release. We are making all-out efforts to deliver the vehicles as soon as possible,” said Volvo Car Korea.
Meanwhile, in response to criticism over Volvo Car Korea’s excessive payout ratio to Sweden’s Volvo Car Corp. owned by China’s Geely Auto Group, the local unit has decided on zero dividend payout this year, the company said.
In 2016, critics highlighted the company’s allocation of 3.2 billion won as dividend payouts, 13 times its 243.2 million won of net profit, based on data from the Financial Services Commission.
Seeking to sell 8,000 units this year, Volvo Car Korea plans to roll out the XC40 small SUV, which targets female and younger generation drivers, in the second quarter of this year, the company said.
By Bo-gyung Kim (
lisakim425@heraldcorp.com)