Volvo Cars sales decline 11% in April, electric vehicle sales slump

Volvo Cars recorded an 11% decrease in April global sales compared to the previous year amounting to 58,881 cars following their Monday announcement. The declining global sales performance reduced Volvo's stock prices by 3% during the first part of the trading day thus worsening its year-to-date loss up to 29%.

Full electric vehicle sales at Volvo Cars experienced an April drop of 32% which brought their share of total sales down to 20%. The total vehicle sales showed a 45% share for electrified products when plug-in hybrid sales joined other equivalents in their drop of 16%.

Also Read | Volvo Cars' new CEO turns to Geely amid Trump tariff pressures

As a global manufacturer Volvo Cars operates in circumstances shaped by U.S. President Donald Trump's introduced trade restrictions together with European brands. Volvo Car Corporation seeks to reduce costs by working with Geely and simultaneously work to maintain U.S. sales but U.S. consumers are buying more hybrid vehicles and conventional combustion engine vehicles. The company wants to attract more Chinese buyers even though they face tough competition from domestic EV producers who sell lower-cost vehicles.

After the uncertainty caused by tariffs the company decided to withdraw its projected earnings for the coming two years during its April announcement. The latest Volvo report lacks regional sales details but the complete market downturn and substantial EV sales drop demonstrate the company's difficulties in the present international automotive industry. The Volvo XC60 achieved the title of best-selling model for Volvo vehicles during April.