Despite continued sales challenges in the second quarter of 2026, Volvo Cars believes the second half of 2026 will see stronger results.
Overall revenues for Q2 were 77.7 billion Swedish krona ($805 million) versus 93.5 billion krona for the same period in 2025, the company reported in a July 17 release.
At the same time, it reported operating profits were 1.1%, down from 1.6% in Q1.
Volvo said its Q2 performance was marked by a “considerable weakening” of the China market for the entire car industry plus global uncertainty “because of the ongoing Middle East conflict,” according to the company.
However, it noted encouraging signs of growth, most notably in the U.S. and European markets.
The U.S. market is showing signs of recovery after several months of sales decline, with Volvo recording consecutive growth in May and June.
Volvo expects this recovery to continue in the second half of the year as the negative effects of the withdrawal of government incentives on electrified cars abate.
Its biggest market, Europe, remains resilient despite increased competition and a weaker pricing environment. Here Volvo saw continued strong performance by its battery-electric vehicles, increasing their market share to 25% from 21% for the same period of 2025.
The company also saw good demand for the EX30, now fully produced in Ghent, Belgium, as well as an all-time high order pace for the EX90. Production of the new EX60 started in April in Sweden.
“In this very challenging external environment, we made progress on our strategic actions,” said Volvo Cars president and CEO Håkan Samuelsson. “This gives us the momentum and confidence that the second half of the year will improve compared to the first six months.”
