Volvo Car Group's monthly sales dropped nearly 25% in April from a year ago, the company announced Wednesday.
The company said demand continues to be high, with the share of fully electric cars increasing from 9% to 10% in March, and that it strives for 50% of its sales to be fully electric cars by 2025.
"In April, COVID-19 lockdowns in eastern China impacted retail deliveries in China and added more challenges to already weakened global supply chains, resulting in additional loss of production," Volvo said in a statement.
Volvo's sales in China fell 48% in April. The company also suffered drop-offs in sales in the U.S. at 9.2% and in Europe at 23.2%.
Last week, Volvo Cars said it had beat profit expectations despite a shortage of semiconductors around the globe and higher costs of production caused by Russia's war on Ukraine, which has resulted in more expensive raw materials, energy and freight.
The company announced in February it had suspended all sales, service and production in Russia over its invasion. Last year, business in Russia accounted for about 3% of the company's net group sales.
Reuters contributed to this report.