Volvo Car AB reported a 5.5% decline in global sales for the three-month period ending in May, selling 178,980 vehicles compared with 189,440 units in the same period last year. The company disclosed the figures on Wednesday, attributing the downturn to growing headwinds across multiple regions and segments.
The automaker, which is majority-owned by Zhejiang Geely Holding Group, said that market pressures were evident across its footprint and affected the premium segment in particular. In China, Volvo Car noted persistent challenges stemming from intense competition and a difficult economic environment, which continued to weigh on deliveries.
In the United States the picture was more mixed. Volvo Car said deliveries showed gradual improvement, describing early signs of recovery for both the industry and the company. Nevertheless, the U.S. market remains hampered by weak customer sentiment and a softer demand profile for fully electric and plug-in hybrid vehicles following the removal of federal EV subsidies last year.
Electrified powertrains make up a substantial portion of Volvo Car's sales mix. Fully electric and plug-in hybrid vehicles together represented 48% of total units sold during the quarter. Fully electric cars accounted for 23% of sales, while plug-in hybrid models comprised 25%.
Electrification momentum in Europe
Despite the external pressures the company faces, Volvo Car reported continued growth in Europe driven by electrification. Deliveries of fully electric cars rose for the eighth consecutive month, the firm said, supported by strong demand for the EX30 and EX40 electric SUVs in European markets.
Initial customer order intake for the new EX60 fully electric SUV surpassed the company’s internal expectations, the company added. Chief Commercial Officer Erik Severinson emphasized that Volvo Car is continuing to expand in Europe through its electrification efforts even as broader market conditions remain challenging.
The company did not provide additional guidance in the release beyond the regional commentary and vehicle mix data. The sales update underscores a contrast between the automaker's growing electric-vehicle penetration and short-term demand pressures in certain key markets.