Volvo Cars' stock plummets amid sharp sales decline in China

Volvo Cars experienced a sharp decline in its stock value following the release of its half-year financial report, which revealed a significant collapse in sales within the crucial Chinese market. From April to June, the company sold only 23,600 vehicles in China, a 37% decrease compared to the same quarter in 2025. This downturn directly affected the company's revenue, which fell to 77.7 billion Swedish kronor from 93.5 billion kronor in the second quarter of the previous year. The operating profit also suffered, landing at 0.8 billion Swedish kronor, falling short of the expected 1.3 billion kronor. CEO Håkan Samuelsson described the first half of 2026 as "turbulent," attributing the difficulties to a weakened market in China, affecting both Volvo and the broader automotive industry. He also pointed to increasing global uncertainty stemming from the conflict in the Middle East. Volvo Cars, acquired by China's Geely Holding in 2010, maintains its headquarters in Gothenburg, Sweden, with production facilities in Sweden and other countries.

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The market in China weakened – both for us and for the entire industry.