Volvo Car reported a 7.4% sales decline in the three months through August, delivering 148,239 vehicles globally. The drop follows a decrease from 160,160 units year-over-year. The Swedish automaker attributed the decline to ongoing market challenges in China and weaker demand in the U.S. for electric and plug-in hybrid models.

Despite the overall dip, fully electric and plug-in hybrid sales grew 13%, representing 53.5% of total global sales. Chief Commercial Officer Erik Severinson stated the company is prioritizing transaction price protection over volume growth in challenging markets. In Europe, Volvo noted steady performance for its electric vehicle lineup, with customer orders for the EX60 surpassing expectations.

The company remains majority-owned by China's Zhejiang Geely Holding Group. Volvo plans to focus on pricing strategy amid continued pressure across all regions.