Volvo Cars reported global sales of 178,980 vehicles during the three-month period from March through May 2026, a decline of 5.5% compared with the same period last year, as challenging market conditions continued to weigh on demand in several key regions.
Despite the overall decline, the Swedish automaker said sales improved compared with the preceding three-month period, suggesting a gradual recovery in customer demand.
Electrified Models Account for Nearly Half of Sales
Volvo’s electrified vehicle portfolio continued to play an increasingly important role in the company’s performance.
The automaker said fully electric vehicles and plug-in hybrid models together accounted for 48% of total deliveries during the March-to-May period.
Battery electric vehicles (BEVs) represented 23% of total sales, while plug-in hybrid electric vehicles (PHEVs) accounted for 25%.
The results highlight Volvo’s ongoing transition toward electrification despite broader challenges affecting the global automotive industry.
China Remains Challenging
Volvo said market conditions remain difficult across several regions, particularly in China.
The world’s largest automotive market has experienced double-digit declines in industry volumes for several consecutive months amid intense competition and a challenging economic environment.
The premium vehicle segment has also come under pressure as manufacturers compete aggressively for market share.
U.S. Market Shows Signs of Recovery
In the United States, Volvo reported early indications of improving demand.
Vehicle deliveries have gradually increased alongside a broader recovery in the automotive sector, although consumer demand remains affected by economic uncertainty and reduced interest in electric and plug-in hybrid vehicles following the withdrawal of government incentives.
Europe Drives Electrification Growth
Europe continues to be Volvo’s strongest market for electric vehicle adoption.
According to Erik Severinson, chief commercial officer at Volvo Cars, the company’s growing portfolio of electric vehicles is helping strengthen its position in the region.
“We continue to see strong momentum for our electric vehicle portfolio in Europe,” said Erik Severinson, chief commercial officer at Volvo Cars.
The company reported that deliveries of fully electric models increased for the eighth consecutive month, supported by strong demand for the EX30 and EX40 electric sport utility vehicles.
Volvo also noted continued growth in retail orders for its battery electric vehicle lineup across European markets.
EX60 Receives Strong Early Response
Volvo said customer and media reactions to its newly launched EX60 electric SUV have exceeded expectations.
The automaker reported that initial orders for the model have surpassed internal forecasts, providing additional momentum for its electrification strategy.
As demand continues to build, Volvo plans to gradually increase EX60 production during the second half of 2026.
The company said strong performance from the EX30, EX40 and EX60 demonstrates continued consumer interest in premium electric SUVs, even as the broader automotive market faces ongoing economic and competitive pressures.