Volvo Cars Faces 12% Sales Drop in June as EV Demand Falters

Volvo Cars reported a 12% decline in global sales for June 2025, totaling 62,858 vehicles, marking the fourth consecutive month of falling volumes due to trade tariffs and weaker electric vehicle (EV) demand, according to Reuters. This downturn highlights challenges for the Swedish automaker, majority-owned by China’s Geely, as it navigates a shifting EV landscape.

EV Sales Plummet Amid Tariff Pressures

Fully electric vehicle sales fell sharply by 26%, comprising just 22% of total sales, while electrified models, including plug-in hybrids, dropped 19% to 44% of the total. The decline reflects global trade tensions, particularly U.S. tariffs impacting Volvo’s cost structure. In May, Volvo announced plans to cut 3,000 jobs, primarily white-collar roles, to address rising costs and trade uncertainties, signaling a strategic pivot to maintain financial stability.

Regional Performance and Industry Trends

Sales in Europe, a key market, decreased by 14%, while the U.S. and China saw declines of 7% and 3%, respectively. In China, sales reached 13,569 vehicles, equivalent to about 8,400 miles of market reach in a figurative sense. These figures underscore a broader industry slowdown in EV adoption, driven by high production costs and limited charging infrastructure, with only 180,000 public chargers available in the U.S.

Volvo’s CEO, Hakan Samuelsson, noted in a prior statement, “We need to be more efficient in our white-collar areas,” emphasizing cost-cutting measures to counter these headwinds.

Implications for EV Enthusiasts

For EV owners and enthusiasts, Volvo’s struggles highlight the need for more affordable models and robust charging networks. The company remains committed to electrification, targeting 90-100% EV sales by 2030, but current market dynamics may delay this goal. Despite the sales dip, Volvo’s shares rose 1% in early trading, suggesting investor confidence in its long-term strategy. As tariffs and demand shape the EV sector, Volvo’s adaptations will be critical for maintaining its leadership in sustainable mobility.

Photos courtesy of Volvo