Volvo Doubled Down on SUVs—But U.S. Sales Still Plunged 32%

Volvo’s goal to increase U.S. sales by 60% by 2030 is a lofty one, but it’s going to need a significant turnaround between now and then to make it happen. The Swedish automaker has just reported first-quarter sales in the U.S., and every single model has seen a decline in sales relative to the same quarter last year. Overall, the company sold 22,651 vehicles in Q1 2026, a steep 32% drop from last year. With a lineup now almost exclusively made up of SUVs and heavily focused on electrified models, Volvo’s range is well off the pace of most other European luxury brands.

A Dismal Start to the Year

Of all Volvo models sold in Q1 2026, 5,762 were electrified (EVs or plug-in hybrids) and 16,889 were mild hybrids. EVs were down 14%, PHEVs were down 49%, and mild hybrids dropped by 29%.

Despite being one of the oldest Volvo models on sale, the XC90 was the best-selling model on 8,513 units, but that’s still 9% less than a year ago. It was followed by the XC60 on 8,061 units (-37%), the XC40 on 3,403 units (-47%), and the EX30 (which will be discontinued at the end of 2026) on 915 units (-23%). Another 458 EX30 Cross Country variants were sold last quarter.

The S60, S90, V60 Cross Country, and V90 Cross Country have all been discontinued, with the final V60 Cross Country models set to be produced this month. That leaves Volvo without a sedan or wagon, although the ES90 electric sedan will change that; it’s not expected to sell in large volumes, though.

“While the first quarter presented challenges, we are seeing strong momentum heading into Q2 and our focus remains firmly on meeting the needs of our customers in a dynamic market, with a diverse portfolio of powertrain options – MHEV, PHEV and BEV,” said Luis Rezende, President, Volvo Car Americas.

To put Volvo’s Q1 sales into perspective, Mercedes-Benz sold 78,500 vehicles last quarter and BMW hit over 80,000 units. Even a much smaller luxury brand like Acura outsold Volvo with sales of over 32,000 vehicles.

Related: Volvo Hasn’t Closed the Door on Wagons Just Yet

What It Means

Even though it’s been a tough quarter for many automakers, Volvo’s sharp decline in sales must be a concern. High average new-car prices, severe winter weather, and rising gas costs have all impacted car sales in Q1, hitting some brands harder than others.

For Volvo specifically, the move to an almost exclusively SUV lineup further eroded sales, and even those SUVs have seen a large decline in sales. The company has also been plagued by software issues in new-generation vehicles, which may have dented the public’s confidence in the brand.

There is one promising launch to look forward to, though: the EX60 SUV will be introduced later this year. If Volvo can stabilize its software before that vehicle launches and capitalize on renewed interest in EVs, the company may be able to finish the year stronger than it started it.