Volvo Cars’ sales fall 10% but EV sales jump 18% in Q1

On the Dash:

• Rising EV sales highlight potential growth opportunities for dealers in fully electric models like the EX60.
• Tariffs and regulatory headwinds may continue to affect dealer margins and pricing strategies.
• Dealers should monitor production schedules and EV inventory to meet growing consumer demand.

Volvo Cars, majority-owned by China’s Geely Holding, reported Wednesday that total sales volumes fell 10% in the three months through February, reaching 156,965 vehicles, citing trade tariffs, regulatory challenges, and other market headwinds.

Despite the overall decline, sales of fully electric models rose 18%, now accounting for 25% of all vehicles sold. Electrified vehicles, including plug-in hybrids, were down 2% and accounted for 49% of total volumes.

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The automaker said it plans to increase production of its new fully electric EX60 SUV, which is scheduled to start in Sweden this spring, to meet strong demand in key markets such as Germany.

Volvo cited challenging conditions in major markets, including the impact of U.S. import tariffs and unfavorable regulatory developments. The company also said the extended New Year holiday in China affected performance.

Last month, Volvo reported a 68% drop in fourth-quarter profit after adjusting prices in response to weak demand. The company forecast year-on-year volume growth in 2026 but warned of a “persistently tough external environment.”

U.S. tariffs on European cars, initially raised to 27.5% and later reduced to 15%, were applied retroactively to August 1, further affecting sales.