By Tom Murphy
As geopolitics, war in the Middle East, tariffs, and consumer uncertainty cast a long shadow across the auto industry, it seems no manufacturer is spared, even the Scandinavians with more modest aspirations. While Volvo delivered 153,516 light vehicles to customers globally in the first three months of 2026 (down 11% from Q1 2025), the outlook was much worse in the Americas (Q1 sales of 29,651, down 28%) and in greater China (down 17% to 28,330 units).
There was no other region that performed as poorly as the Americas, though. Sales dropped 36% for plug-in hybrids (5,932 units), 21% for electric vehicles (4,964 units), and 26% for mild hybrids and straight internal combustion. In no uncertain terms, Volvo has some big problems to solve.
Across the board, Volvo Car USA reported nothing but minus signs for every single model. The XC90 SUV was the top seller, with 8,513 units (down 9%), followed closely by the XC60's 8,061 units (down 37%) and the XC40's 3,403 vehicles (down 47%). The battery-electric EX90 was down 30% to 702 units while thecompact EX30, after just two years in the market and originally intended to be among the most affordable electric SUVs in the US, will be yanked from the portfolio at the end of this year, partially driven by the loss of federal tax credits. The 2026 EX30 carries a base price of about $40,000, reflecting a $5,000 increase from two years ago.
US Lineup Tilts Toward BEVs
The US lineup is going through massive changes right now, after the S60 and S90 sedans have departed (although still apparently available in some showrooms, in minuscule numbers), while the V90 Cross Country will only be around while supplies last. The V60 Cross Country departs later this year.
This puts more pressure on the EVs to pick up lost sales volume, and that is not likely to happen in this market. Still, the all-electric EX60 is coming to the US this year, slotting above the EX30. That means a higher price point, so Volvo will need to deliver a lot of feature content for the money, especially for shoppers who thought the EX30 was too small.
Read the full article on CarBuzz
This article originally appeared on CarBuzz and is republished here with permission.
