Volvo Cars August-October sales volumes down 16% year-on-year

Volvo Cars experienced a 16% year-on-year decline in vehicle sales in the August-October quarter, reporting a total of 141,656 units sold, down from 169,393 units in the same period last year, according to the company's statement on Wednesday. The shift in demand has prompted Volvo Cars to focus on stabilizing its business rather than pursuing volume growth.

Electric cars, particularly fully electric models, showed a significant surge in sales, up 27% to constitute 34% of total sales. This was a stark contrast to plug-in hybrid sales, which experienced a 30% drop, accounting for 20% of the volumes sold. Geely Holding, Volvo Cars' majority shareholder, acknowledged the company's strategy of adapting to lower demand in China and stabilizing its business.

In China, Volvo Cars noted that demand for electric vehicles remains robust, especially for the EX60 model. The company has already received over 50,000 orders for the EX60, but its deliveries are currently being affected by the ramp-up in production. However, Volvo Cars is actively working to improve production volumes to meet this strong demand. The company's recent weaker-than-expected earnings and decision to cut another 2,500 jobs led to its shares hitting record lows, with Geely Holding as its primary owner.