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 a slump in demand for its combustion-engine cars in both China and the US. The Swedish company is one of the few European premiums to succeed with electrified models in China in recent months thanks to a technical collaboration with owner Geely roll out the long-range XC70 plug-in hybrid. However sales of Volvo’s dominant combustion-engine models in the country more than halved in the three months to the end of September to peg sales back by 41% overall amid a wider crash in the market for cars that aren’t electric or plug-in hybrid. Combined with a 14% slump in sales in North America, Volvo overall posted a 11% sales decline 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 it 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 while the company’s optimism for a better second half amid the launch of the new EX60 hasn’t materialised. The news knocked around 7% of Volvo’s share price, which this year has more than halved in value. Analysts have been reluctant to recommend the stock as little short-term relief looks forthcoming. Volvo has pinned its hopes on a faster roll-out of electrified models that has this year seen the launch of the EX60 and new versions of the XC60 plug-in hybrid with significantly better electric range. 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 plug-in hybrids as the older models were overtaken by 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 it will launch 13 new models by the end of 2030 in major overhaul of its line-up, including new cars on its SPA3 platform that underpins the EX60. Volvo says that in Europe it will offer a "full BEV line-up" by 2030, with the models including "new low- and high-body types". Volvo classes high-body vehicles as SUV, and low-body types as saloons and estates, hinting at a return to its more traditional roots. Volvo has been forced to extend the life of its XC90 and XC60 models as combustion engine demand stayed strong particularly in the key market of the US amid radically shifting emissions rules. However the company now says that electrification even in the US will enable it to differentiate the brand from rivals while also delivering profitability. Volvo “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,” Fredrik Hansson, Volvo CFO, at the company’s investor day. The company is targeting a long-term margin figure of 8% driven by the increased profits in cars on the SPA3 electric 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,” Hansson. Volvo says the new EX60 is more profitable than the XC60 it sells alongside.

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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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