Volvo Cars’ global vehicle sales dropped 11% in the first quarter of 2026, the company announced in an April 2 release.
The automaker sold 153,316 units globally in Q1, down from 172,219 in the same period last year. Volvo’s European and rest of world region sales, which excludes Greater China and the Americas, reached 95,335 vehicles in Q1, a 2% YoY decline.
However, fully electric vehicles provided one bright spot, with global sales rising 12% year over year in Q1 to 36,348 units compared to 32,449 in the same period last year.
In Europe and the rest of the world region, Volvo’s fully electric vehicle sales increased by 21% in Q1, with electrified vehicles (including hybrids) accounting for 57% of Volvo Cars’ sales volume in the region.
Globally, electrified models represented 47.3% of all cars sold in Q1, becoming the highest among legacy premium carmakers, according to Volvo. Fully electric vehicles accounted for 23.7% of all Volvo Cars global sales in Q1, while the share of plug-in hybrid models accounted for 23.6%. However, total global sales of electrified models fell by 3% in Q1.
“Fully electric cars remain the key growth driver for Volvo Cars and for the industry, reinforcing our strategy to grow and emerge as a leader in the premium fully electric car segment,” said Erik Severinson, Volvo Cars chief commercial officer, in a statement.
Total vehicle sales in the Americas region decreased by 28% to 29,651 units, with sales of electrified models falling by 30% and sales of PHEVs declining by 36%. The automaker cited the loss of incentives on EV and PHEV purchases for the declines. Volvo said its sales performance in the Americas region was also made worse by the ongoing geopolitical conflict in the Middle East.
“Deliveries in the U.S, however, remain impacted by weak customer sentiment and the phaseout of incentives impacting electrified products,” Severinson said in a statement.
The 26% PHEV sales decline in the Americas region in Q1 was countered by a 146% hike in China, which recorded 7,153 hybrid units sold versus 2,907 for the same period in 2025. Overall, sales of electrified models in China increased by 116% in Q1 to 7,604 vehicles.
Despite the jump in electrified vehicle sales in Greater China, Volvo’s total vehicle sales in the region fell 17% YoY to 28,330 units. The automaker cited a competitive market, seasonal effects and the prolonged Chinese New Year holiday period for the decline.
Volvo said its Q1 sales performance continues to illustrate persistent challenges facing the automotive industry globally in the form of continued pricing pressure, uncertain geopolitics, tariffs and adverse regulatory changes.
