The Swedish firm said Thursday (January 5) that it had seen challenges across the supply chain.

It also cited restraints caused by parts shortages and health crisis-related lockdowns in China.

That's the home of its parent firm, Geely Holding.

The problems saw sales dip 12% to just over 615,000 cars.

But there were signs of hope at the end of the year.

Sales in December grew 13% on 2021 - a slight acceleration from November.

Over the last month of the year, electric cars accounted for a fifth of its sales.

When hybrids are included, electrified vehicles accounted for 44%.

Volvo shares were down over 3.5% by lunchtime in Europe following the results.