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.