Sales of fully electric cars grew by 27 per cent and comprised 34 per cent of all cars, while plug-in hybrid models accounted for 20 per cent. Overall, the company's sales of electrified models - fully electric and plug-in hybrid models - accounted for 55 per cent of all cars sold during the period.

Sales during the three-month period reflect challenging market conditions in China, as increased competitive pressure from local players and a weak macroeconomic environment continue to impact demand. In the US, market conditions remain tough, as record-low consumer sentiment and the removal of incentives on electric and plug-in hybrid cars negatively affected demand.

In Europe, momentum towards electrification continued to accelerate, driving strong demand for Volvo Cars' fully electric models.

"In China, we are adapting to lower demand and focusing on stabilising the business rather than chasing volumes," said Erik Severinson, Chief Commercial Officer at Volvo Cars. "In the US, we are focusing on our updated mild- and plug-in hybrid portfolio. In Europe, underlying demand for our fully electric cars remains strong, particularly for the EX60, with orders already exceeding 50,000 cars. Deliveries are currently impacted by the ongoing production ramp-up, but we are steadily improving built volumes."