Volvo Cars reported a modest growth in global sales in December 2025, driven largely by rising demand for its electric and plug-in hybrid vehicles, even as full-year sales declined amid challenging market conditions.
The Swedish automaker sold 75,049 cars globally in December, marking a 2 per cent increase compared to the same month last year. However, full-year 2025 sales fell 7 per cent year-on-year to 710,042 units, reflecting pressure across global automotive markets. China, the United States, the United Kingdom, Germany and Sweden emerged as Volvo Cars’ five largest markets during the year.
Commenting on the performance, Erik Severinson, Chief Commercial Officer at Volvo Cars, said the company closed the year on a positive note due to stronger uptake of electrified models. He highlighted growing customer interest in fully electric models such as the EX90 and EX30, along with strong momentum for the XC70 long-range plug-in hybrid in China, a key growth market for electrified vehicles. Severinson also confirmed that Volvo Cars will unveil the all-new EX60 on January 21, calling it a “game-changing” addition to the brand’s electric portfolio.
Europe: EV Growth Offsets Overall Decline
In Europe, Volvo Cars sold 33,406 vehicles in December, marginally lower than last year. Notably, fully electric car sales surged 33 per cent, while total electrified models grew 2 per cent. Electrified vehicles accounted for 65 per cent of all European sales during the month. For the full year, European sales declined 10 per cent to 332,667 units.
US Market Hit by Subsidy Withdrawal
In the United States, December sales rose 1 per cent to 14,193 cars. While fully electric sales increased 43 per cent, overall electrified model sales dropped sharply due to the removal of subsidies for EVs and plug-in hybrids. Total US sales for 2025 stood at 121,607 units, down 3 per cent year-on-year.
China: Plug-in Hybrids Drive Electrification Surge
China continued to be a key electrification growth market for Volvo Cars. December sales reached 16,103 cars, up 1 per cent year-on-year. Electrified vehicle sales jumped 128 per cent, led by a 213 per cent surge in plug-in hybrid sales. Despite this strong electrified performance, total China sales for 2025 declined 4 per cent to 149,549 units.
Global Electrification Momentum
Globally, Volvo Cars sold 36,143 electrified vehicles in December, a 6 per cent increase, with fully electric models rising 28 per cent. For the full year, electrified vehicle sales reached 323,294 units, although this was 8 per cent lower than in 2024. Fully electric vehicle sales totaled 151,830 units in 2025, underscoring the company’s continued transition toward zero-emission mobility.
In terms of models, the XC60 remained Volvo’s best-selling car in 2025 with 230,655 units sold, followed by the XC40/EX40 and the XC90.
Despite a tough year for the global auto industry, Volvo Cars signaled confidence in its long-term electrification strategy, positioning upcoming EV launches and an expanding plug-in hybrid lineup as key drivers for future growth.
