Volvo Car AB posted a sharp earnings dip in Q1 as electric‑vehicle sales wavered in the US and China. The Sweden‑based automaker, owned by Geely, slipped to a 2.2% EBIT margin, barely above its year‑ago figure. Revenue fell after retail unit sales dropped 11%.

Weak demand in America and fiercer Chinese rivals tightened margins. Volvo’s earnings story mirrors the broader shift in the global auto market, where legacy players struggle to keep pace with pure EV brands. Investors now focus on how the company will navigate these headwinds.

In response, Volvo is pushing the EX60 electric SUV, unveiled in January, to reignite growth. Early European orders outpace forecasts, prompting the company to boost output at its Torslanda plant in Sweden. The model could become a revenue anchor in the coming quarters.

With sales pressure mounting, Volvo’s next moves will hinge on the EX60’s performance and its ability to sustain margins in a crowded EV arena. The company’s strategy will be scrutinized by shareholders and analysts alike.