Volvo Car Sales Drop 10% in March as EV Demand Weakens

Volvo Cars reported a 10% year-over-year decline in global sales for March 2025, delivering 70,737 vehicles as demand for electric vehicles (EVs) continued to slump. The Sweden-based automaker, majority-owned by China’s Geely, cited a sharp drop in fully electric car sales, which fell 26% and now make up just 19% of total sales.

Sales of electrified vehicles, including plug-in hybrids, also declined 9%, representing 43% of the company’s overall volume. Regional performance showed weakness across key markets, with European sales down 9%, U.S. sales down 8%, and Chinese sales plunging 22%.

The decline in EV sales comes at a critical time for Volvo, which has been positioning itself as a leader in the transition to electric mobility. Market pressures, such as global tariffs and softening EV demand, have intensified competition and impacted profitability.

To steer through the ongoing challenges, Volvo Cars announced the return of former CEO Hakan Samuelsson on Sunday. Samuelsson will lead the company for the next two years, replacing Jim Rowan, who had served as CEO since 2022. The leadership change signals a strategic shift as Volvo looks to stabilize operations and regain investor confidence.

Following the sales report and executive shake-up, Volvo Cars’ stock fell 2% on Wednesday morning, bringing its year-to-date decline to 24%, significantly underperforming the broader Stockholm market.

Despite headwinds, Volvo remains committed to its long-term electrification goals. However, the recent figures underline the urgent need for renewed strategies to boost EV demand and navigate the increasingly complex global automotive landscape.