On Wednesday, January 7, 2026, Sweden’s Volvo Cars announced a 2% increase in sales for December, moving a total of 75,049 vehicles. While the month showed positive momentum for fully electric models in Western markets, the company faced significant hurdles throughout 2025, resulting in a 7% decline in total annual sales volume.
Electric Vehicle Performance: A Tale of Two Regions
The December data highlights a stark contrast in global demand for Volvo’s electric lineup:
- Western Growth: Sales of fully electric cars surged by 33% in Europe and 43% in the United States.
- China Slump: In contrast, the Chinese market saw a dramatic 80% dive in electric vehicle sales.
- Overall EV Gains: Despite the regional disparity, total global sales for fully electric cars rose by 28% year-on-year in December.
The company credited the EX90 and EX30 models for driving the increased deliveries of electric products during the final month of the year.
Navigating a Turbulent 2025
The past year was defined by a series of economic and geopolitical pressures that reshaped Volvo’s operations. The company, which is majority-owned by China’s Geely Holding, struggled with:
- Trade Barriers: Significant impact from U.S. import tariffs.
- Market Shifts: Intense competition and a broader slowdown in the global EV market.
- Cost-Cutting Measures: In response to these pressures, Volvo cut 3,000 jobs and slowed investment projects.
- Strategic Relocation: The carmaker took steps to move some hybrid production to the United States to mitigate tariff risks.
Market Rankings and Financial Outlook
In 2025, Volvo sold a total of 710,042 cars. Its top-performing markets were led by China, followed by the United States, Britain, Germany, and Sweden.
Despite the “challenging year,” the company remains focused on its financial goals, targeting an operating profit margin of more than 8%. While shares dropped 2% following the announcement, the stock has seen an overall 35% increase over the last 12 months.
Volvo is scheduled to release its full-year financial results on February 5, 2026
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