Volvo Cars has reported global sales of 162,864 vehicles for the three-month period from February to April 2026, marking a 10% decline compared to the same period last year, as challenging market conditions continue to impact the automotive sector.
The company attributed the drop in sales to macroeconomic pressures and shifting market dynamics across key regions. China, one of Volvo’s major markets, witnessed a significant decline due to increased competition from domestic manufacturers and a weak economic environment. In the United States, sales were affected by low consumer confidence, reduced demand for electrified vehicles following the removal of subsidies, and pricing pressures in the SUV segment.
Despite the overall decline, Volvo Cars reported resilience in Europe, its largest market, where order volumes remained strong. The company highlighted continued growth in fully electric vehicle (EV) deliveries, which have increased for seven consecutive months, driven primarily by models such as the EX30 and EX40.
Electrified vehicles — including both fully electric and plug-in hybrid models — accounted for 48% of total sales during the period. Fully electric vehicles represented 24% of total sales, showing a 14% year-on-year increase to 39,235 units. However, plug-in hybrid sales declined by 12% to 38,551 units, while mild hybrid and internal combustion engine (ICE) vehicles saw a sharper drop of 16%.
Erik Severinson, Chief Commercial Officer at Volvo Cars, stated that the company remains focused on executing its strategic priorities and maintaining pricing discipline in key markets. He emphasized that upcoming product launches and production ramp-ups are expected to support growth in the second half of the year.
Among upcoming developments, Volvo Cars plans to begin customer deliveries of the EX60 later this year, with production expected to scale gradually. In China, the company has also introduced a front-wheel-drive variant of the XC70 to expand its market reach.
While the current environment remains challenging, Volvo Cars’ growing share of fully electric vehicles highlights its ongoing transition toward electrification. The company continues to focus on strengthening its EV portfolio and improving competitiveness across global markets.
As the automotive industry navigates economic uncertainty and evolving consumer demand, Volvo Cars’ performance reflects both the headwinds affecting traditional segments and the gradual momentum building in electric mobility.
