Volvo Cars reported on Wednesday that its global sales fell 12% year over year in May to 59,822 vehicles.
Internal combustion engine (ICE) vehicles continued to lead the Swedish brand’s sales, with a share of nearly 56% — while deliveries of new energy vehicles declined year over year from 48.2% to 44%.
The Geely-owned company sold 12,391 fully electric vehicles last month, representing 2o.7% of the total sales.
EV registrations declined 27.4% year over year, despite being up 5.9% from April.
Battery electric (BEV) sales have been consistently under 15,000 units since last September, and their record high was a year ago, with over 18,000 units sold.
Year to date, BEV registrations from Volvo accounted for 56,537 units out of 290,922 (19.4%), meaning that nearly one in every five cars sold by the brand was an electric model.
The brand’s best-selling models were the XC60 — a plug-in hybrid SUV, with 19,408 units sold — and the XC40/EX40 SUVs, which include both fully electric and plug-in hybrid versions, with 14,892 units sold.
According to Automotive News, recently appointed CEO Håkan Samuelsson hinted on Tuesday that the XC60 midsize crossover would be the next model to be produced in its U.S. plant.
Volvo currently produces the fully electric EX90 at the Lowcountry plant. The facility is also responsible for manufacturing the Polestar 3 model.
On May 29, Volvo sued seat maker Lear Corporation, saying Lear refused to deliver important parts needed to build the EX90. Volvo says this led to a temporarily halt in production, due to a parts shortage.
According to the brand, Lear demanded a price increase on parts due to rising tariffs — a demand the automaker rejected citing contractual clauses.
Earlier last month, the company had announced a 5% job reduction at its South Carolina plant affecting 125 workers.
Last week, Volvo Cars announced a new round of layoffs affecting 15% of its global workforce — within the 3,000 positions cut, 1,200 are based in Sweden.
The company said that more details on its recently launched “cost and cash action plan” will be provided at the upcoming earnings conference call, scheduled for July 17.
“The actions announced today have been difficult decisions,” Samuelsson stated. “But they are important steps as we build a stronger and even more resilient Volvo Cars.”
The company announced in early May, as it reported that “given external developments and increased uncertainties”, it is “no longer providing financial guidance for 2025 and 2026.”
