Volvo Car AB has reported a 5.5% year-over-year decrease in global vehicle sales for the three-month period ending May 31st, with its stock price declining by 2.48%.
The Swedish automaker, majority-owned by China's Zhejiang Geely Holding Group, disclosed a total of 179,000 vehicles sold during the period, compared to 189,000 units in the same timeframe last year.
The company stated that operational challenges across global automotive markets, including the premium segment, have intensified and are directly reflected in the sales figures.
In China, sales performance was pressured by heightened market competition and a generally weak macroeconomic environment.
US Market Shows Signs of Gradual Recovery
Within the United States, there are initial signs of recovery for both the broader industry and for Volvo, with new vehicle deliveries showing a slow improvement. However, the overall market remains under pressure due to subdued consumer demand following the expiration of federal electric vehicle subsidies last year, which has weakened demand for both pure electric and plug-in hybrid models.
During the reporting period, fully electric and plug-in hybrid vehicles together accounted for 48% of total sales, with pure electric models making up 23% and plug-in hybrids comprising 25%.
Chief Commercial Officer Erik Severinson noted that despite significant external challenges, the company has managed to grow its business in the European market, supported by its electric product portfolio.
Driven by strong sales of the EX30 and EX40 all-electric SUVs in Europe, Volvo's pure electric vehicle deliveries have increased month-over-month for the eighth consecutive period.
Preliminary orders for the new EX60 all-electric SUV have already surpassed internal company expectations.
Severinson added that the company is preparing to gradually ramp up production capacity for this new model in the second half of the current year.
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