Volvo withdraws forecast after China and US slumps hit sales

Volvo has said it won’t hit its original targets for sales and cash flow in 2026 after slumps in demand for its ICE cars in China and the US. The Swedish company is one of the few European premium brands to succeed with electrified models in China in recent months, thanks to a technical collaboration with Chinese owner Geely to roll out the XC70, a long-range PHEV. However, sales of Volvo’s dominant ICE models in the country more than halved in the three months to the end of September, pegging back sales by 41% overall amid a wider crash in the market for cars that aren’t EVs or PHEVs. Combined with a 14% slump in sales in North America, this meant Volvo posted an overall sales decline of 11% for the three months. “As a result of the increased market uncertainty, Volvo Cars has also taken the decision not to provide any updated short-term forward-looking statement,” the company said in a statement. Volvo wasn’t previously specific about how many cars it wanted to sell in 2026 but had forecast an increase in sales over 2025’s figure of 710,042. That was knocked by an 8% drop in sales in the first half, then Volvo's optimism for a better second half amid the launch of the new EX60 didn't materialise. The news has knocked around 7% of Volvo’s share price, which has more than halved in value this year. Analysts have been reluctant to recommend the stock as little short-term relief seems forthcoming. Volvo has pinned its hopes on a faster roll-out of electrified models, including the launch of the EX60 and new versions of the XC60 and XC90 PHEVs with significantly longer electric ranges. The company posted a sales increase for its EVs of 27% in the three months ending September, but that wasn’t enough to offset a decline in sales of its PHEVs as the older models were overtaken by newer rivals. Sales of the XC70 in China helped Volvo’s PHEV numbers jump in the country by 46% in the same period, but a big fall in European sales eclipsed that, likely as customers switched to electric. Volvo said in September that it will launch 13 new models by the end of 2030 in major overhaul of its line-up, including new cars on its SPA3 EV platform, which underpins the EX60. It has pledged to offer a "full BEV line-up" in Europe by 2030, with the models including "new low- and high-body types". Volvo classes high-body vehicles as SUVs and low-body types as saloons and estates, hinting at a return to tradition. Volvo has been forced to extend the life of its XC90 and XC60 models as ICE demand has stayed strong particularly in the key market of the US amid radically shifting emissions rules. However, the company believes that electrification even in the US will enable it to differentiate itself from rivals while also delivering profitability. “We have an aging product portfolio. We've shared a lot about the changes we're doing to it. But here and now, it is getting rather old,” said CFO Fredrik Hansson at Volvo's recent investor day. The company is targeting a long-term margin figure of 8%, driven by the increased profits in cars on the SPA3 EV platform, as well as sharing parts and technology with Geely. “The big profit step-up is from SPA3 with the advantages it has, that provides a margin increase regardless of volume,” said Hansson. The EX60 is projected to be more profitable than the XC60 beside which it will be sold.

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Volvo withdraws forecast after China and US slumps hit sales

Swedish company concedes that it will miss its original sales and cash flow targets, damaging stock price

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Volvo withdraws forecast after China and US slumps hit sales

Swedish company concedes that it will miss its original sales and cash flow targets, damaging stock price

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