Volvo Cars Sees Stronger Second Half Despite China Slump
The Swedish automaker posted 800 million crowns in operating profit and expects margins to improve as EX60 output ramps up.
- On Friday, July 17, 2026, Volvo Cars reported an operating profit of 800 million Swedish kronor for the second quarter, significantly lagging the 1.6 billion reported in the first quarter.
- Revenues fell to 77.7 billion kronor from 93.5 billion kronor a year earlier, as a 35% sales plunge in China squeezed operating profit margins to 1.1% from 1.6% the quarter before.
- Gross margin contracted to 16.8% from 18.5% in the first quarter, while Volvo Cars delivered 5 billion kronor of its 18 billion-crown cost-cutting plan six months ahead of schedule.
- "It's a very tough situation; volumes are down and severe price competition," CEO Hakan Samuelsson told Reuters, calling China the "most difficult region in the whole automotive industry."
- Volvo Cars expects earnings margins to rise in the second half as the flagship EX60 SUV ramps up output, though CFO Fredrik Hansson cautioned rising raw material costs remain largely outside company control.
21 Articles
21 Articles
Volvo Car released its second quarter results, marked by numbers below market expectations due to the difficulties in China, which made its stock drop more than 7% on the Stockholm Stock Exchange. Exclusive material for subscribers. To have full access, access the link of the material and register.
Volvo's car sales in China fell significantly in the second quarter. The past six months have been described as "turbulent".
Profits are plummeting, China is falling and Volvo Cars' shares have plunged 8 percent. When Sweden's second largest company reports its second quarter, CEO Håkan Samuelsson promises a turnaround in the fall. Now a lot is at stake with the new electric SUV EX60, writes DN's Jonas Fröberg.
Volvo Cars sees stronger second half despite steep China decline, rising costs
Volvo Cars anticipates improved profitability in the second half of the year. Rising raw material costs and a severe China slowdown are impacting current operations. The Swedish automaker experienced a significant sales drop in the Chinese market. This downturn has squeezed operating profit margins considerably for the company. Volvo is implementing cost-cutting measures and expects volume growth.
Volvo Car Flags Weak Profitability on Challenging China Market
Volvo Car second-quarter earnings were weaker than expected as intense competition, higher costs and expenses related to the production ramp-up of a new fully electric SUV weighed on profitability.
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