Volvo Cars reports lower second-quarter sales but expects recovery

Swedish carmaker Volvo Cars reported lower sales in the second quarter and described the business environment as very challenging, but said it expected sales to improve in the second half of the year.

Chief executive Hakan Samuelsson said the second quarter ended a turbulent first half of 2026. He said Volvo Cars and the wider industry faced a weaker market in China, while global uncertainty increased because of the Middle East conflict.

For April to June, Volvo Cars reported revenue of 77.7 billion kronor, or $8.05 billion, down from 93.5 billion kronor a year earlier. The company said vehicle sales fell six percent to 171,500.

Net income was 417 million kronor. A year earlier, Volvo Cars reported a net loss of 8.1 billion kronor, but that quarter was affected by an 11.4-billion-kronor writedown in the value of its electric cars.

Samuelsson said there were positive signs ahead. He said the US market showed signs of recovery after several months of declining sales, with growth in May and June, and that Volvo Cars expected the recovery to continue. He also cited growth in Europe and said the company expected sales in the second half of the year to be significantly stronger than in the first half.

The company also said it was progressing with cost cuts. Samuelsson said headcount had been reduced by about 3,000 positions compared with the first half of 2025. Volvo Cars announced an 18-billion-kronor cost-cutting plan last year.