Volvo Cars announced this Wednesday that it has lowered its sales growth forecast for the end of the year, from a range of 12-15% to 7-8%, due to a decline in demand for cars and “the focus on protecting the company’s margins at the expense of volume.”
“Demand continues to decrease and is now affecting the premium segment,” Volvo said in a statement.
The Swedish brand had already reduced its profit forecast last month, amid global uncertainty and higher tariffs on electric vehicles manufactured in China, where it has some production.
The electric SUVs EX90 and EX30 also reported a profit of 13.6 billion crowns (€1.192 billion) by September, an increase of 27% compared to the same period last year.
Sales reached 288.1 billion Swedish crowns (€25.260 billion), a decrease of 1%, the business group stated in a release.
The operating profit (EBIT) was 18.5 billion crowns (€1.622 billion), a 27% increase, which is identical to the increase recorded in the gross operating profit (EBITDA), which stood at 34.4 billion crowns (€3.016 billion). Additionally, Volvo Cars sold 560,900 vehicles between January and September, corresponding to a 10% increase.
In the third quarter, the Swedish company reported a profit of 4.4 billion Swedish crowns (€386 million), up 35%. Sales increased by 1% compared to the same period last year, reaching 92.8 billion crowns (€8.136 billion).
