Volvo Cars’ reported global sales of 171,501 cars in the second quarter of 2026 were down 5.6% from the same period last year, reflecting continued challenges especially in China.
However, retail deliveries improved sequentially from the first quarter thanks to strong demand for the company’s fully electric vehicle in Europe and a modest recovery in the U.S., the company said in a June 2 release.
Volvo’s EV sales increased 14% globally in Q2, led by strong demand in Europe, its largest sales region, while EV sales across the rest of the world jumped 25%.
Including the month of June, the company reported its ninth consecutive month of growth in EV deliveries globally, boosted by strong demand for the EX30 and EX40 SUVs.
In Europe and the rest of the world, Volvo Cars’ sales rose 2%, with deliveries of 104,259 units. This was mainly due to a 9% sales decline of plug-in hybrid vehicles and an 8% drop in conventional hybrids and internal-combustion vehicles. Overall, electrified models comprised 62% of all sales in those regions.
In the Americas region, sales increased by 4% to 42,630 vehicles, demonstrating gradual recovery in the U.S. market for two consecutive months.
The overall market still remains impacted by weak customer sentiment, increased competition in the SUV segment and a slower-than-expected recovery of EV and PHEV sales following the removal of government subsidies.
The ongoing price war in the Greater China region hit Volvo Cars’ sales along with regulatory changes and a weak macro-economic environment, the automaker said. Deliveries stood at 24,882 cars, down 35% compared to the same period last year, reflecting the broader downturn in the industry.
Yet, sales of electrified models in China increased by 144% to 9,909 cars, on the back of a 172% jump in PHEV deliveries because of an increase in sales of the XC70 long-range PHEV.
“Overall market conditions remain challenging, specifically in China, but we are encouraged by the momentum for the fully electric cars in our largest market, Europe,” said Erik Severinson, Volvo Cars’ chief commercial officer. “We see increased deliveries and order intake for our EX30, even in less electrified South European markets. The EX60 will further strengthen our share in the growing fully electric segment and continues to surpass expectations with robust customer orders,” he added.
