Volvo Cars, a company under the ownership of Geely, reported a decline in global car sales for August 2025. The total number of vehicles sold reached 48,029, marking a 9% decrease compared to the same month in the previous year. The primary reason for this decrease was a significant reduction in the demand for fully electric vehicles (EVs), which saw a decline of 28% and accounted for 20% of the overall sales volume.
Sales of electrified vehicles, including plug-in hybrids, also experienced a drop of 17%, representing 43% of Volvo Cars’ total sales. Despite the overall decrease in sales, the XC60 model emerged as the most popular choice for customers, with sales reaching 17,366 units, showing an increase from the previous year. Following closely behind were the XC40/EX40 with 9,404 units sold and the XC90 with 7,246 units sold, both experiencing slight decreases from the previous year.
July’s sales figures stood at 49,273 vehicles, indicating a continuing declining trend through August. The second quarter of 2025 proved to be challenging for Volvo Cars, with a substantial loss reflected in a group operating profit (EBIT) of Skr10.0bn ($1.02bn), down from Skr8.0bn in the same quarter of the previous year. Additionally, the company reported a significant one-off non-cash impairment charge of Skr11.4bn ($1.19bn) for Q2, attributed to adjustments in the financial valuation of its EX90 and ES90 platforms.
Despite these financial challenges, Volvo Cars has begun production of its new Volvo ES90, a fully electric vehicle designed for the European market. Orders for the ES90 have been opened in various European regions, with deliveries expected to commence later in the year. Plans are also in place to introduce the ES90 to select Asia Pacific markets in the near future.
The ES90, unveiled in March, features 800-volt technology, offering enhanced range and quicker charging times compared to previous electric models from Volvo Cars. In addition to the ES90, Volvo Cars recently showcased the new long-range plug-in hybrid (PHEV) XC70, which is now available for pre-order in China, with plans for a future release in Europe.
In conclusion, despite facing challenges in sales and financial performance, Volvo Cars remains committed to innovation and sustainability by introducing new electric and hybrid models to meet the evolving demands of the automotive market. The company’s focus on electrification and technological advancements underscores its dedication to driving the future of mobility.
