Volvo (ST:VOLVb) saw its global vehicle sales fall by 14% year-on-year in July, delivering 49,273 units amid continued weakness in electric vehicle (EV) demand, the company reported Monday.

The Swedish automaker, majority-owned by China’s Geely, extended its sales downturn for another month, reflecting ongoing challenges in the EV segment and softer consumer appetite for electrified models.

EV Sales Drag Overall Performance
Sales of fully electric vehicles (EVs) dropped 26% year-over-year to 10,511 units, while plug-in hybrid deliveries fell 21% to 11,461 units. Combined, these electrified models made up 45% of total sales in July, down from 51% a year earlier.

Volvo’s internal combustion engine (ICE) models appear to be weathering the downturn more effectively, though they too face broader market pressure.

Top Performers and Segment Breakdown
Despite the overall decline, the XC60 SUV remained Volvo’s best-selling model in July, with 16,813 units sold, up from 15,577 in July 2024.
Sales of the XC40/EX40 dropped to 12,087 from 13,818, while XC90 sales slid to 7,266 from 8,146.

Trend Continues Through 2025
July’s results continue a consistent downward trend for Volvo:

• June sales: down 12% (62,858 units)

• May: down 12%

• April: down 11%

• March: down 10% (70,737 units)

The company has not yet issued updated forward guidance, but analysts note that sustained weakness in EV adoption and growing competition from Chinese automakers are putting pressure on Western EV brands.

Market Reaction
Shares of Volvo (VOLVb) edged down 0.55% following the report.