Volvo Cars Sees 11% Sales Drop in April Amid Tariff Pressures
Volvo Cars reported an 11% decrease in April sales to 58,881 cars compared to the previous year, causing its shares to decline. The Sweden-based company, majority-owned by China’s Geely, stated that sales of fully electric cars fell 32%, making up 20% of total sales volumes. Sales of electrified cars, including plug-in hybrids, were down 16%, accounting for 45% of total sales.
The company faces challenges juggling cost-cutting measures with Geely while trying to maintain sales to US consumers who prefer hybrids and combustion-engine models. Additionally, Volvo Cars aims to attract Chinese customers despite stiff competition from local automakers offering more affordable electric vehicles. Shares in Volvo Cars, which withdrew its earnings forecast for the next two years in April due to tariffs, were down 3% in morning trade, bringing its year-to-date decline to 29%. The company did not provide regional sales details.
