Volvo Cars’ sales volumes fell 10 per cent in the three months through February due to trade tariffs and other market headwinds, but sales of fully electric cars jumped, the Sweden-based group said on Wednesday.
Volvo Cars, majority-owned by China’s Geely Holding, said in a statement it sold 156,965 cars in the period. Volumes for fully electric models increased 18 per cent to account for 25 per cent of all cars sold.
Sales for the period were weighed down by tough market conditions, “impacted by tariffs and unfavourable regulatory developments especially in the United States. The prolonged new year holiday period in China further affected our performance,” it said in a statement.
“However, we are pleased to see steady growth in the sales of our fully electric cars.”
Sales volumes of electrified cars as a whole, also including plug-in hybrids, were down 2 per cent to account for 49 per cent of total volumes.
Volvo Cars said earlier it would increase production of its new fully electric EX60 SUV, production of which is due to start in Sweden during spring, to meet strong demand in key markets such as Germany.
The group last month reported a 68 per cent dive in fourth-quarter profit as it adjusted prices in response to weak demand and forecast year-on-year volume growth in 2026 but braced for what it termed a “persistently tough external environment”.
US President Donald Trump initially hiked import tariffs on cars from the European Union to 27.5 per cent from 2.5 per cent during last year’s push to reset Washington’s global trade relations. That was later reduced to 15 per cent, applied retroactively to August 1. Shares in Volvo Cars, which is due to publish its first-quarter earnings report on April 29, were roughly unchanged in morning trade. Year-to-date, shares are down 25 per cent.>
