The automaker posts EV growth but sees declines in hybrid and gas-powered models amid global headwinds.
Martin Lundstedt | President and CEO of Volvo AB
On the Dash:
- Weak U.S. consumer sentiment may slow showroom traffic and increase reliance on incentives
- EV sales growth signals continued demand shift despite broader volume declines
- Competitive pressure from Chinese automakers highlights pricing and margin challenges
Volvo Group reported it sold 153,316 vehicles in the first quarter of 2026, down 11% from the same period in 2025, as softening demand in the United States and intensifying competition in China weighed on global results.
Americas sales fell 28% to 29,651 vehicles, driven by weak consumer sentiment compounded by the removal of subsidies for fully electric and plug-in hybrid cars. Tariffs on foreign-built vehicles also pushed prices higher, with XC60 prices rising roughly $4,000 over the past year, accelerating the retreat from showrooms. Not a single new Volvo model grew its U.S. sales last quarter.
In Greater China, sales reached 28,330 vehicles, down 17%, due to a competitive market, seasonal effects and the extended Chinese New Year holiday period. Volvo faces tough competition on pricing and new product launches by competitors in China, though the company said it defended its overall market share and gained ground in plug-in hybrids.
Notably, BEV sales rose 12% during the quarter, pushing Volvo’s fully electric share of total sales to 23.7%, the highest among legacy premium carmakers. BEV sales have grown for six consecutive months through March, driven entirely by electric models in the 30, 40 and 90 series.
However, total global sales of electrified models fell 3% in Q1, with PHEV sales in the Americas declining 36% as buyers who had relied on federal incentives stepped back from the market.
Despite the fully electric EX60 having just started production, customer deliveries are expected to begin this summer. Volvo also plans to begin building the XC60 at its South Carolina plant later this year to reduce tariff exposure, a move that could help stabilize U.S. pricing and margins heading into the second half of 2026.
