Camilla Jessen
Volvo posts worst quarter in years as global sales fall 11%.
Volvo Cars has begun 2026 on a difficult note, posting its lowest first-quarter performance in several years.
According to Vi Bilägare, Volvo’s global sales fell 11 percent in the first three months of the year. The company delivered 153,316 vehicles between January and March, down from 172,219 in the same period last year.
The drop comes even as Volvo continues to position electric vehicles as central to its long-term strategy.
While fully electric car sales rose 12 percent during the quarter, they still represented just 23.7 percent of total deliveries. Plug-in hybrids accounted for a similar share at 23.6 percent.
Regional gaps
Performance varied across regions.
In Europe and other markets, sales declined by only 2 percent to 95,335 vehicles.
At the same time, electric car sales in those regions grew 21 percent, with electrified models making up 57 percent of deliveries.
In contrast, the US market saw a sharper downturn, with sales falling 28 percent to 29,651 vehicles. Volvo cited weaker demand and the removal of subsidies for electric and hybrid cars as key factors.
China also recorded a notable drop, with sales down 17 percent to 28,330 vehicles. The company pointed to intense competition, seasonal trends and the impact of the Lunar New Year holiday.
Transition pressure
Despite growing electric vehicle sales, the gains were not enough to offset declines in other segments. Plug-in hybrid sales dropped 14 percent globally, while mild hybrids and petrol models fell by 17 percent.
This leaves Volvo in a transitional phase where newer technologies are expanding, but legacy models are declining faster than electric vehicles can compensate.
The shift has already proven costly. Previous reporting by Boosted highlighted significant financial losses tied to heavy investment in new models and technology.
Industry headwinds
Volvo’s commercial chief Erik Severinson said the results reflect broader industry challenges. He pointed to pricing pressure, geopolitical uncertainty, tariffs and regulatory changes affecting the market.
The company did note a positive trend in Europe, where March marked the sixth consecutive month of growth in electric vehicle deliveries.
Sources: Vi Bilägare, Boosted
