Volvo Cars has reported a solid financial performance for the third quarter of 2025, achieving an operating income (EBIT) of SEK 6.4 billion and an EBIT margin of 7.4%, driven by effective cost-cutting measures and strategic progress toward full electrification.
The company’s revenue stood at SEK 86.4 billion, slightly lower than the SEK 92.8 billion recorded in Q3 2024, while operating income rose from SEK 5.8 billion in the same period last year. The improvement reflects the impact of Volvo’s SEK 18 billion cost and cash action plan, which has delivered faster-than-expected reductions in operational expenses.
Volvo Cars’ fully electric vehicle (EV) sales accounted for 22% of total deliveries during the quarter, compared to 25% a year ago, while electrified models (EVs and hybrids combined) made up 45% of total sales. The automaker sold 160,514 vehicles globally, a 7% decline year-on-year, but noted a return to modest growth in September—particularly in markets such as the UK, Austria, Türkiye, Canada, Brazil, and Mexico.
Despite global economic headwinds and fierce competition in the premium EV market, Volvo Cars remains focused on its transition to an all-electric future. The company is currently ramping up production of its flagship EX90 electric SUV in Chengdu and Ghent, and has begun road testing for the upcoming EX60, a born-electric mid-size SUV set for global debut in January 2026.
“In a tough market we delivered a solid third-quarter result and our cost and cash actions are delivering,” said Håkan Samuelsson, Chief Executive Officer of Volvo Cars. “We’re ramping up sales of our battery-electric vehicles and remain on track for the very important EX60 launch, which will strengthen our position in the most popular electric segment.”
Volvo continues to regionalize its operations, expanding local production capabilities. In the U.S., the automaker announced plans to add a new hybrid model to its South Carolina plant, complementing the upcoming local production of the XC60, while in China, Volvo recently launched the next-generation XC70 long-range hybrid, receiving positive customer feedback.
Looking forward, Volvo Cars expects market conditions to remain challenging due to ongoing price competition and U.S. import tariffs, though the recent tariff agreement between the U.S. and EU is expected to ease some trade pressures.
The company anticipates further benefits from its cost-optimization plan in Q4, as it continues investing in electrification and new vehicle architecture. The EX60 launch in early 2026 is expected to be a major growth driver in the expanding global electric SUV segment—reinforcing Volvo’s commitment to becoming a fully electric carmaker by 2030 and achieving net-zero emissions by 2040.
