Volvo doubles down on EVs as US sales backslide

Volvo Cars confirmed it sold 156,965 vehicles in the three months to the end of February, marking a 10% year-on-year decline. The Geely-backed Swedish OEM attributed the fall to US tariffs and unfavourable regulation more broadly, and it is against this backdrop it simultaneously confirmed plans to double down on electric vehicles by ramping up production of the new EX60 SUV.

US tariffs continue to be a source of confusion and uncertainty for global automakers: rates last year were raised to 27.5% before being reduced to 15% and applied retroactively from 1 August. Last week, President Donald Trump announced the imposition of new 10% duties in response to the Supreme Court ruling that some of his tariffs were illegal. Shortly thereafter he abruptly raised the rate to 15%. 

Volvo, which has been more staunch in its embrace of EVs than most of its global counterparts, has struggled in this new trade environment. The automaker’s shares are down 25% year-to-date, and the company posted a 68% fall in fourth-quarter profit after cutting prices in response to weak demand. It has forecast volume growth in 2026 but flagged a “persistently tough external environment.”

EVs represent the sole bright spot in the company’s recent results. Battery-electric sales rose 18% during the three-month period, accounting for fully one quarter of total volumes. Meanwhile, electrified models including plug-in hybrids accounted for almost half of all cars sold. Little surprise, then, that it is bolstering its support.

The newly unveiled EX60 is arguably the strongest manifestation of Volvo’s confidence in the segment. Barely a month removed from its reveal back in January, the automaker has announced that nearly all major European markets are reporting orders significantly above its internal forecasts, with Sweden alone accounting for more than 3,000 binding orders thus far. 

This has likely caused some concerns about waiting times. “That so many customers ordered the EX60 in the first month has surpassed our expectations, and it’s a good ‘problem’ to have,” said Erik Severinson, Chief Commercial Officer, in a statement. “We are very encouraged to see such strong demand for our game-changing electric SUV, and we are now reviewing our production plans for 2026, as we gear up for the start of customer car production next month.” 

Volvo is now in discussions with local trade unions to keep its Torslanda plant open for an additional week during the summer—the first time in the company’s history it has sought to do so. At the same time, it is emphasising a “steady and prudent” production ramp-up to ensure quality. Target volumes for the added production have not been disclosed. 

The EX60, built on Volvo’s new SPA3 platform, offers a WLTP range of up to 810 km, 370 kW charging power and an 18-minute charge time, with prices starting around €62,990. It joins the automaker’s growing EV portfolio, which also includes the EX30 and EX40 compact vehicles, as well as the flagship EX90 three-row SUV.

US order books for the EX60 have not yet opened and are expected to do so later this spring. The combination of a high-demand new model and deteriorating sales in Volvo’s two largest markets puts the EX60 under considerable pressure to deliver, but it is likely the automaker is managing its expectations given the wider EV backslide seen in the US.