Volvo Cars reports 10% drop in global sales amid weak China, US demand

Volvo Cars reported a 10% drop in global sales for the February-April 2026 period, reflecting weaker demand in China and softer deliveries in the United States.

The Swedish automaker said it sold 162,864 cars in the three months through April. The company blamed competitive pressure and a challenging macro environment in China, while saying US deliveries were hit by record-low customer sentiment, slower recovery in fully electric and plug-in hybrid sales after subsidy removal, and SUV pricing pressure.

Volvo Cars did have one bright spot: fully electric car sales rose 14% to 39,235 vehicles, making up 24% of total sales. The company also said its Europe order pace remained resilient, led by fully electric cars.

Reuters reported the same sales decline later in the day, and market coverage said the stock moved on the update. The release adds to signs that consumer demand remains uneven even as electric vehicle sales continue to expand in some markets.

For investors, the next question is whether Volvo can stabilize volumes in China and the US without losing momentum in battery-electric models.