Volvo Cars' Global Sales Down 9% Year-on-Year in August, Electrified Vehicle Sales Drop 17%

On September 4th, Volvo Cars announced that its global sales in August fell by 9% year-on-year to 48,029 vehicles. Among them, sales of Volvo electrified models (including pure electric vehicles and plug-in hybrid vehicles) in August declined by 17% year-on-year, accounting for 43% of the company's total global sales that month (with pure electric vehicles accounting for 20% and plug-in hybrid vehicles accounting for 23%).

In August this year, the XC60 was Volvo's best-selling model, with sales reaching 17,366 units (compared to 14,723 units in the same period in 2024). It was followed by the Volvo XC40/EX40, with sales of 9,404 units (10,668 units in the same period in 2024), while the Volvo XC90 ranked third with 7,246 units sold (7,292 units in the same period in 2024).

Although sales of Volvo's electrified models have declined, most analysts expect that by 2030, demand for pure electric vehicles will continue to grow and surpass that of traditional internal combustion engine vehicles. Therefore, the majority of Volvo Cars' research and development efforts remain firmly focused on electrification.

At the same time, Volvo Cars will also update its plug-in hybrid vehicles to provide an attractive transition solution for customers and regions where charging infrastructure is still underdeveloped. It is reported that the company will first launch its first plug-in hybrid vehicle, the new XC70, in the Chinese market and plans to start production in the third quarter of this year.

Earlier this year, Volvo Cars launched a SEK 18 billion cost and cash flow adjustment program. The program has already begun to show results and is expected to be fully effective by 2026.

In July this year, Volvo Cars announced that its adjusted EBIT for the second quarter was 2.9 billion SEK. Although this exceeded market expectations, it was a significant decrease compared to 8 billion SEK in the same period last year. Notably, on July 14, Volvo Cars announced a $1.2 billion impairment charge, mainly related to model launch delays and the impact of tariffs, which resulted in the company recording an operating loss of 10 billion SEK.

In its second-quarter financial report statement, Volvo Cars said: "Due to weakened consumer confidence, market demand remains persistently weak and volatile, and the implementation of new tariffs has also posed challenges to the automotive industry."