Volvo Cars reported global sales of 153,316 vehicles in the first quarter of 2026, marking an 11% decline compared to the same period last year, as the global automotive industry continues to grapple with pricing pressures, geopolitical uncertainties, and regulatory shifts.
Despite the overall dip, the company’s electrification strategy showed resilience. Sales of fully electric vehicles (EVs) rose by 12% year-on-year to 36,348 units, accounting for 23.7% of total sales. Plug-in hybrid vehicles (PHEVs) contributed an additional 23.6%, taking the total share of electrified models to 47.3%—the highest among legacy premium carmakers.
Chief Commercial Officer Erik Severinson emphasized that fully electric cars remain the company’s primary growth driver. He noted strong momentum in Europe and Rest of the World (RoW), where EV deliveries recorded double-digit growth and marked six consecutive months of expansion.
Regionally, Europe and RoW remained Volvo’s largest market, with sales reaching 95,335 units, down 2% year-on-year. However, EV sales in the region surged by 21%, reflecting growing demand for premium electric mobility.
In contrast, the Americas saw a sharp 28% decline in sales to 29,651 units. The downturn was attributed to weak consumer sentiment and the removal of subsidies for electrified vehicles, which significantly impacted demand for both EVs and plug-in hybrids.
The Greater China market also posed challenges, with total sales falling 17% to 28,330 units due to intense competition, seasonal factors, and the extended Chinese New Year period. However, electrified vehicle sales in the region jumped 116%, driven largely by a 146% surge in plug-in hybrid deliveries.
Globally, while total electrified vehicle sales dipped slightly by 3% to 72,579 units, the shift toward fully electric models remained evident. Meanwhile, mild hybrid and internal combustion engine (ICE) vehicle sales declined by 17%, underscoring the ongoing transition toward cleaner mobility solutions.
Looking ahead, Volvo Cars is preparing to begin production of new models, including the EX60, following strong customer interest. The company also highlighted continued demand for long-range plug-in hybrids such as the XC70 in China’s rapidly evolving new energy vehicle market.
While macroeconomic and policy headwinds persist, Volvo Cars’ growing EV portfolio and strong performance in key regions signal a steady push toward its ambition of becoming a leader in the premium electric vehicle segment.
