Volvo Cars revises 2026 outlook amid shifting vehicle demand

Volvo Cars has revised its 2026 outlook, stating it will not meet previous sales volume and cash flow forecasts. The company cited a deteriorating market in China and a slower-than-expected recovery in the United States as primary factors. In the third quarter, global deliveries fell by 10.7% year-on-year to 141,609 units.

Despite the overall decline, there is a significant shift in powertrain demand. While internal combustion and mild hybrid deliveries dropped by 23.6%, electrified vehicles—including battery electric (BEV) and plug-in hybrids (PHEV)—grew by 4.6%, accounting for 53% of total sales. In China, electrified sales grew by 25% even as traditional engine sales plummeted by 52%. In Europe, BEV deliveries saw a 51% increase.

In parallel with these global shifts, Volvo is advancing its industrial expansion in Slovakia. The Košice plant has reached a milestone of 1,000 employees and has begun its first work shifts. The facility, which aims to produce 250,000 electric vehicles annually, is currently in testing operations and expects to begin commercial production of 'made in Slovakia' vehicles within several months.