On the Dash:
- Volvo Cars global sales fell 16% to 141,656 vehicles from August through October.
- Weak demand in China and lost EV incentives in the U.S. drove the decline.
- Fully electric sales rose 27% while plug-in hybrids fell 30%, and EX60 orders topped 50,000.
Volvo Cars’ global sales fell 16% in the three months through October as weak demand in China and the U.S. weighed on volume, the automaker said in a press release. The Swedish brand sold 141,656 cars from August through October, down from 168,967 in the same period a year ago, with electrified models making up 55% of those sales.
The automaker said market conditions in China remain challenging, as increased competition from local players and a weak macroeconomic environment continue to hurt demand there.
The automaker is adapting to lower demand and focusing on stabilizing the business rather than chasing volume, according to Chief Commercial Officer Erik Severinson. Record-low consumer sentiment and the removal of incentives on electric and plug-in hybrid cars cut into demand, according to the release.
In the U.S., Volvo Cars is focusing on its updated mild-hybrid and plug-in hybrid lineup. Fully electric car sales grew 27% to 48,660 cars and made up 34% of Volvo Cars sales in the period. Plug-in hybrid sales fell 30% to 28,857 cars and accounted for 20% of total sales.
Electrification momentum in Europe continued to build and drove strong demand for Volvo Cars’ fully electric models. Orders for the EX60 have already topped 50,000, Severinson said.
Deliveries are currently held back by the ongoing production ramp-up, and Volvo Cars is steadily improving built volumes, Severinson said. Total electrified sales slipped 3% to 77,517 cars because plug-in hybrid losses outweighed the electric gains. Mild-hybrid and combustion-engine models made up the remaining 45% of sales, or 64,139 cars, down 28% from a year ago.
U.S. dealers are working in a market where weak consumer sentiment and the loss of EV incentives are holding back demand, based on Volvo Cars’ latest figures.Â
Volvo Cars is steering its U.S. mix toward mild-hybrid and plug-in hybrid models, which signals where the brand sees its best near-term opportunity. That focus also shows the automaker is adjusting its lineup to match current buyer demand. Franchised dealers can use the shift to review stocking plans by powertrain. Plug-in hybrid sales fell 30% globally, while fully electric sales grew 27%.
