Volvo has withdrawn its sales guidance for the year after a decline in sales in China and the US. The Swedish automaker’s global sales decreased by 10.7% in the third quarter compared to last year.
In the US, Volvo sold fewer than 24,000 cars in the past quarter, with electric vehicle sales experiencing a significant drop.
Sales Performance
Volvo faced significant challenges in China and the US, where sales declined once again in the past quarter. As a result, the company decided to pull its full-year sales volume and cash flow guidance, causing shares to drop by as much as 4% in early trades.
Since the beginning of the year, Volvo Cars’ shares have lost roughly 50% of their value. The company stated that “an increasingly challenging market situation and deteriorating near-term market outlook has resulted in lower-than-expected sales and a weaker full year outlook for Volvo Cars.”
Volvo’s US electric vehicle sales plummeted, but the arrival of the new EX60 is expected to improve the situation. During the third quarter, the company sold 141,609 cars globally, a 10.7% decrease from the same period last year.
Regional Sales
Mild hybrids led the decline with 23.6% fewer units sold, followed by plug-in hybrids with an 18% decrease. However, all-electric models saw a 28.6% increase year over year, with 45,060 units sold worldwide from July to September.
China was the region where Volvo lost the most ground, with 20,284 cars sold, resulting in a 40.6% drop compared to last year. In the US, the company sold 23,766 cars, 8.7% fewer than last year, with fully electric models tumbling 41.1%.
Europe was the only region where Volvo saw positive numbers, with sales totaling 90,548 units, up 2% year-over-year. Electric vehicles reached 40,466 new customers, 51% more than last year.
Volvo’s previous guidance, released in July, predicted stronger sales in the second half of the year and positive cash flow toward the end of 2026. The company hopes that the new EX60 electric SUV will help improve sales in the US.
A new CEO, poached from the Volkswagen Group’s Skoda brand, is also joining the company to address its challenges. Volvo still aims to improve its margins to 8% by the end of the decade, up from 3.5% in 2025.
The company is also planning to launch more models by the end of the decade, including the refreshed XC60 and XC90 plug-in hybrids with increased electric range. With these new models and the arrival of the EX60, Volvo hopes to regain its momentum in the market.