Volvo Cars' global sales declined by 16% - demand for fully electric vehicles is growing

Swedish automaker Volvo Cars, owned by China's Geely, sold 141,656 vehicles worldwide in the three-month period ending in October. This represents a 16% decrease compared to the same period in 2025.

Despite the overall decline in sales, demand for fully electric vehicles increased. Sales of these models rose by 27%, accounting for 34% of the company's total sales. Over the same period, sales of plug-in hybrids fell by 30%, representing 20% of total volume. As a result, electrified models — fully electric vehicles and plug-in hybrids combined — accounted for 55% of Volvo Cars' sales.

According to the company, sales were affected by challenging market conditions. In China, demand is being weighed down by growing competition from local manufacturers and a weak macroeconomic environment.

Volvo Cars' Chief Commercial Officer, Erik Severinson, said the company is adapting to reduced demand in China and is focused on stabilizing the business rather than artificially boosting sales volumes.

In the US market, sales are also being hampered by low consumer sentiment and the elimination of government incentives for electric vehicles and plug-in hybrids.

In Europe, however, the shift toward electrification continues, driving demand for Volvo's fully electric vehicles. According to Severinson, interest is particularly strong in the EX60, which has already received more than 50,000 orders. That said, deliveries are currently constrained by the gradual ramp-up of production capacity. The company states that production volume is being increased step by step.