Volvo automotive sales decline by 9% in August's market
Volvo Cars has announced that its new fully electrified vehicle, the ES90, will be delivered to customers in the USA and Europe markets later in 2025. The news comes as the automotive industry continues to shift towards electric vehicles (EVs).
The ES90, unveiled in March, features 800-volt technology, offering enhanced range and quicker charging times compared to previous electric models from Volvo Cars. The demand for EVs at Volvo Cars decreased by 28% in August 2025, contributing to 20% of the overall sales volume.
Despite the decline in EV sales, the ES90 is expected to make a significant impact. Orders for the ES90 have been opened in various European regions, with deliveries expected to begin later in the year. Plans are also in place to introduce the ES90 to select Asia Pacific markets soon.
In August 2025, Volvo Cars reported a decline in global car sales, with 48,029 vehicles sold, a 9% decrease from the same month in the previous year. The XC60 remained the most popular model for Volvo Cars, with sales of 17,366 units, an increase from the previous year. The XC40/EX40 was the second most popular model, with sales of 9,404 units, though this represented a decrease from last year's sales. The XC90 was the third most popular model, with sales of 7,246 units, also slightly down from the year before.
The declining trend in sales for Volvo Cars continued through August 2025, as indicated by the 14% drop in sales figures from July 2025. Volvo Cars reported a substantial loss in the second quarter (Q2) of 2025, with a group operating profit (EBIT) of Skr10.0bn ($1.02bn), a downturn from Skr8.0bn in Q2 of 2024. The company attributed this loss to a one-off non-cash impairment charge of Skr11.4bn ($1.19bn) for Q2, attributed to adjustments in the financial valuation of its EX90 and ES90 platforms.
Despite these challenges, Volvo Cars continues to innovate and lead in the automotive industry. The company recently showcased the new long-range plug-in hybrid (PHEV) XC70, which is now available for pre-order in China (where it is made). The Just Auto Excellence Awards, which celebrate innovation, leadership, and impact, offer a chance for companies like Volvo Cars to showcase their achievements, elevate their industry profile, and position themselves among top leaders driving automotive industry advancements.
As Volvo Cars prepares to deliver the ES90 later in 2025, the company is poised to continue its commitment to sustainability and innovation in the electric vehicle market.
