Volvo revises down its forecast for 2026. Sales in China dropped by 40.6%.
Volvo Cars withdrew its full-year sales and cash flow forecasts for the third quarter of 2026. The brand’s global sales declined by 10.7%, although electric vehicles saw strong growth.
From July to September, Volvo delivered 141,609 vehicles to customers. Soft hybrids were the hardest hit, with sales falling by 23.6% year on year. Plug-in hybrids saw a 18% decline.
Electric vehicles moved in the opposite direction. Volvo sold 45,060 electric cars globally, which is 28.6% more than in the third quarter of 2025. However, this was not enough to save the overall results.
China is dragging Volvo down, while Europe is still holding its own
The biggest problem arose in China. Quarterly sales there dropped by 40.6% to 20,284 vehicles. In the United States, Volvo delivered 23,766 cars, 8.7% less than the previous year, but sales of fully electric models plummeted by 41.1%.
The manufacturer attributes the poor U.S. results to weaker consumer sentiment, increased competition in the SUV segment, and lower demand for electrified vehicles. The model lineup also poses a challenge. The EX30 was available in the U.S. for only a short time and cost more than initially announced, the EX40 was withdrawn, and the expensive EX90 had a difficult launch.
Europe presents a completely different picture. Volvo sold 90,548 cars there, a 2% increase year-on-year. Electric vehicles found 40,466 buyers, representing a 51% rise. Thus, Europe accounted for nearly 90% of the brand’s global sales of electric models in this quarter.
EX60 to Fix Things in the USA
In July, Volvo still expected a stronger sales rebound in the second half of the year and clearly positive cash flows by the end of 2026. Now the company admits it won’t meet those earlier forecasts. In a statement, it cited an increasingly difficult market situation and worsening short-term prospects.
Following this news, Volvo Cars’ shares dropped by as much as 4% at the opening of trading. Since the beginning of 2026, their value has already fallen by about 50%.
The manufacturer’s hope lies with the Volvo EX60, which is meant to refresh its electric lineup in the United States. It will be joined by upgraded XC60 and XC90 plug-in models with greater electric range. The company still aims for an 8% margin by the end of the decade, up from 3.5% in 2025, with the new president brought in from Skoda also set to help sort out the situation.
For now, the figures show a rather unusual picture. Volvo’s sales are growing globally, but almost all of this growth comes from Europe. The EX60 will need to prove that the brand can achieve similar results beyond the Atlantic.
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