Volvo Cars sales plunge in China, pivots to US market and new electric models

Volvo Cars reported a steep decline in sales and revenue during the first half of the year, with the Chinese market hit hardest. Sales in China fell roughly 30 % and revenue dropped more than 40 %, far outpacing the overall market contraction. Company‑wide revenue was down 17 % year‑on‑year, and the stock fell about 7 % after the results were released.

Volvo said it is deliberately avoiding the intense price war in China to protect its brand and margins, even though this means lower volume. In contrast, the United States showed signs of recovery, with sales rising around 9 % and becoming the biggest revenue source for the brand in the period. Electric‑vehicle sales grew, with fully electric models up about 5 % and plug‑in hybrids up roughly 10 %.

The automaker is counting on new EVs such as the EX30, EX60 and the upcoming ES90, slated for launch later this year, to revive its performance in a tightening global market.