Volvo Faces March Sales Decline as Global EV Demand Fluctuates

Volvo Cars saw a 10% sales drop in March 2025, with BEV sales falling in Europe and China. Discover key figures and the company's response to the slowdown.

Volvo Cars reported a 10% drop in global sales for March 2025 compared to the same month last year, selling a total of 70,737 vehicles. For the first quarter of the year, cumulative sales stood at 172,219 cars, marking a 6% year-on-year decrease.

The primary driver of this decline was weaker demand for fully electric vehicles (BEVs), particularly in Europe and China. Electrified models (BEVs and plug-in hybrids) accounted for 43% of total March sales—a 9% decrease from last year. BEV sales dropped by 26%, while plug-in hybrids saw a 10% increase.

In Europe, total sales fell 9% to 36,093 units, with BEV sales plunging by 39%. This may reflect growing pressure from Chinese competitors and reduced consumer confidence amid economic uncertainty. However, plug-in hybrid sales rose by 15%, suggesting a potential consumer preference for transitional drivetrain technologies.

China presented a more challenging scenario. Sales declined by 22% overall, and BEV sales nosedived by 53%. Nevertheless, total electrified vehicle sales rose 20% thanks to a sharp 59% jump in plug-in hybrid sales, signaling Volvo’s tactical pivot in a highly competitive, price-sensitive market.

Meanwhile, the U.S. market offered a bright spot. Despite an 8% drop in overall sales, BEV deliveries surged by 181% year-over-year, indicating solid momentum for electric adoption in North America.

The company’s top-selling models in March were the XC60 (23,776 units), followed by the XC40/EX40 (18,629) and XC90 (10,764).

In response to market turbulence and geopolitical headwinds, Volvo brought back former CEO Håkan Samuelsson to lead the company through this period of transformation. The company has also revised its electrification targets—now aiming for 50–60% of global sales to be electrified by 2025, and 90–100% by 2030.

To reinforce its position, Volvo is pushing cost optimization measures and preparing to launch five new or refreshed models in 2025, including the all-electric EX90 SUV and the ES90 sedan, which will feature 800-volt battery technology.

With a cautious yet adaptive approach, Volvo is positioning itself to navigate the volatility of the global automotive market while steadily advancing toward its electrified future.

Source: volvocars.com