On the Dash:
- Volvo’s U.S. recovery continued despite softer global results, suggesting luxury vehicle demand remains stronger in North America than in some overseas markets.
- Electrified vehicles are becoming the brand’s primary growth driver, with EVs and plug-in hybrids now making up more than half of Volvo’s global sales.
- China’s prolonged slowdown continues to pressure global automakers, increasing the importance of strong performance in the U.S. and Europe to offset weaker demand abroad.
Volvo Cars reported a 4% year-over-year decline in global sales, totaling 164,663 vehicles during the three months ending in July. Weaker demand in China drove most of the decline, and Volvo identified it as the largest factor affecting global sales.
Sales decreased despite stronger performance in other key regions. For instance, in the U.S., sales increased for the third consecutive month, showing double-digit growth, while Europe remained stable with modest growth. Chief Commercial Officer Erik Severinson expressed optimism about the improving demand in the U.S. and the resilient performance in Europe.
Sales of fully electric and plug-in hybrid models rose by 15%, and electrified vehicles accounted for 53% of Volvo’s global sales during this period. Additionally, Volvo noted that retail orders for its fully electric models continue to rise in Europe.
Looking ahead, Volvo anticipates that the new EX60 model will enhance its position in the expanding EV segment, as customer orders have exceeded expectations. The automaker plans to increase production and deliveries of the EX60 during the second half of 2026.
