Volvo Cars recorded 171,501 global deliveries in the second quarter of 2026, a 5.6% decline from the same period a year earlier. The Swedish automaker said challenging market conditions, particularly in China, continued to weigh on overall performance.
Despite the softer headline result, Volvo’s electric vehicle business gained momentum. Fully electric car deliveries rose 14% globally in Q2, marking the company’s ninth consecutive month of EV growth. Demand for the Volvo EX30 and Volvo EX40 was especially strong in Europe and other international markets.
Europe Drives Volvo’s EV Growth
Volvo’s strongest performance came from Europe and Rest of the World, where deliveries increased 25% for fully electric models. Total regional sales reached 104,259 vehicles, up 2% year over year.
Electrified vehicles — including both battery-electric and plug-in hybrid models — accounted for 62% of regional sales, highlighting the growing importance of Volvo’s electrified lineup.
The company also reported rising customer orders in Europe, led by the new Volvo EX60. Orders for the compact Volvo EX30 increased by double digits, including in less mature EV markets in Southern Europe.
“Overall market conditions remain challenging, specifically in China, but we are encouraged by the momentum for the fully electric cars in our largest market Europe,” said Erik Severinson, Volvo Cars’ Chief Commercial Officer.
EX60 Production Ramp-Up Begins
Volvo said the Volvo EX60 is exceeding expectations, with strong customer demand ahead of broader showroom availability. First deliveries are beginning, and the company is preparing to increase production in the second half of 2026.
Overall, electrified models represented 52% of all Volvo sales globally during the quarter, underscoring the brand’s ongoing transition toward an all-electric future.
Americas Recover Gradually
In the Americas, Volvo delivered 42,630 vehicles, a 4% increase from a year ago. The company cited a gradual recovery in the U.S. market, with sales improving for a second consecutive month.
However, Volvo noted that consumer sentiment remains subdued, competition in the SUV segment is intensifying, and demand for EVs and plug-in hybrids has recovered more slowly than expected following subsidy reductions.
China Remains a Major Challenge
The weakest region was Greater China, where deliveries fell 35% year over year to 24,882 vehicles. Volvo attributed the decline to intense competition, regulatory changes, and a weak macroeconomic environment.
One bright spot was electrified vehicle demand. Sales of EVs and plug-in hybrids in China surged 144% to 9,909 vehicles, helped by a 172% jump in plug-in hybrid deliveries driven by the Volvo XC70.
Volvo’s EV Transition Continues
While Volvo’s overall sales declined in the second quarter, the company’s electric vehicle business continued to expand. Strong demand for the Volvo EX30, Volvo EX40, and upcoming Volvo EX60 suggests the automaker is gaining share in Europe’s growing EV market even as broader industry conditions remain uneven.
With electrified vehicles now accounting for more than half of global sales, Volvo’s long-term strategy remains increasingly tied to the success of its expanding electric lineup.
