Volvo Cars has reported global sales of 156,965 vehicles for the three-month period from December 2025 to February 2026, marking a 10% decline compared with the 175,286 vehicles sold during the same period a year earlier.
According to the company, the decline was largely driven by challenging global market conditions, including tariffs and regulatory developments, particularly in the United States, as well as the extended New Year holiday period in China, which affected vehicle demand.
“Our sales for the period were impacted by the continued tough market conditions, including tariffs and unfavorable regulatory developments, especially in the U.S.,” said Erik Severinson. He added that the prolonged holiday season in China also weighed on the company’s performance.
Despite the overall drop in sales, Volvo Cars recorded strong growth in its fully electric vehicle (EV) segment, which continues to be the fastest-growing category in Europe and globally. Sales of fully electric models increased by 18% year-on-year, reaching 39,132 units during the three-month period.
A key driver behind this growth was the Volvo EX30, the company’s compact electric SUV, which is now produced at Volvo’s manufacturing facility in Ghent. The company noted that the updated EX30, featuring expanded market appeal and premium features, is expected to further support Volvo’s electrification strategy.
Overall, electrified vehicles, including fully electric and plug-in hybrid models, accounted for 49% of Volvo Cars’ total sales during the period. While plug-in hybrid sales declined by 16% to 37,474 units, the share of fully electric cars increased significantly, reflecting the company’s ongoing shift toward electric mobility.
Meanwhile, sales of mild hybrid and internal combustion engine vehicles fell by 17% year-on-year, totaling 80,359 units.
