Volvo Faces Fifth Straight Monthly Sales Decline
Volvo sales are in sharp decline, with the Swedish automaker posting its fifth consecutive drop and worst figures of 2025. In July, global deliveries fell to 49,273 units, a 14% year-over-year drop and the lowest monthly total so far this year. The slump follows a second-quarter operating loss of $1 billion, intensifying concerns over the company’s trajectory.
From Record Highs to Steep Declines
Just a year ago, Volvo was riding high on strong global demand. But in 2025, its momentum has stalled. The decline began early in the year and has accelerated month after month, with July marking the largest percentage drop yet.
Volvo Monthly Global Sales – 2025
January: 50,820 (-5%)
February: 50,662 (+1%)
March: 70,737 (-10%)
April: 58,881 (-11%)
May: 59,822 (-12%)
June: 62,858 (-12%)
July: 49,273 (-14%)
How Strategy Missteps Fueled the Slide
Industry trends have long shown SUVs dominating sales while sedans lag far behind. Despite this, Volvo dedicated its only U.S. factory — in South Carolina, its third-largest market — to producing the S60 sedan for nearly a decade. The result? Overcapacity in a segment with low demand.
The flagship EX90 electric SUV was meant to correct course, but at over $80,000 and plagued with software issues, it failed to gain traction. Only recently did Volvo decide to build the XC60 crossover — its top-selling model — in the U.S., a move many analysts believe should have happened years ago.
EV Ambitions Meet Market Reality
Volvo had pledged to go fully electric by 2030 but scaled back the goal last year. The revised target now aims for 90%-100% EV and plug-in hybrid sales. This shift mirrors broader industry trends, as automakers adjust to slower-than-expected EV adoption.
The EX30 electric crossover illustrates the challenge. It was a European success in 2024, ranking as the third best-selling EV on the continent. But built in China, it fell victim to higher tariffs in the U.S. and EU, pushing its U.S. starting price to $46,195 — a deal-breaker for many buyers.
Tariffs and Production Shifts
To offset tariff impacts, Volvo began producing the EX30 in Belgium earlier this year. The move should lower U.S. prices and reduce European wait times, potentially restoring momentum.
Leadership, Layoffs, and a Turnaround Plan
Under the leadership of CEO Hakan Samuelsson, Volvo is implementing aggressive changes, including 3,000 layoffs and a sharper focus on aligning products with market demand. Samuelsson acknowledges the challenges, citing economic headwinds, tariff uncertainty, and fierce competition, but remains confident in a recovery.
“Demand remains under pressure… however, our turnaround actions are starting to show results,” he said.
The company expects its turnaround plan to fully take hold in 2026, with more strategic production, competitive pricing, and a balanced EV lineup.
Volvo’s current struggles are a stark reminder of how quickly market dynamics can shift — and how costly strategic missteps can be. But with the right moves, the brand’s next chapter may tell a very different story.
Stay tuned to Maple Wire for more updates on the global auto industry.
