China’s ‘Foreign Brand’ Bloodletting: Is Volvo’s XC70 the Last Premium Survivor?

The Great China EV Reckoning: A Market in Crisis

For Western Original Equipment Manufacturers (OEMs), the Chinese automotive market has turned into a ‘Foreign Brand’ bloodletting. Data through mid-2025 shows local Chinese brands commanding nearly 69% of the passenger vehicle market, having stripped foreign competitors of roughly one-third of their share since 2020. This tectonic shift—fueled by the rapid, tech-driven surge of domestic New Energy Vehicle (NEV) makers—has traditional global giants scrambling to hold onto relevance.

Yet, amidst this brutal consolidation and price war, one foreign-heritage premium brand is showing remarkable resilience: Volvo Cars.

The Data Anomaly: China Growth vs. Global Headwinds

As a seasoned Auto Market Insight Analyst based in China with over 10,000 posts under my belt, I look for the ‘twist’ in the data. The November 2025 figures for Volvo provide it. The company’s global sales declined by a notable 10% year-on-year, reaching 60,244 units, reflecting ongoing structural and transformational challenges worldwide. Global year-to-date sales were also down by 8%.

However, mainland China tells a different story:

• Total November Sales: 14,236 units.
• MoM Growth: +2.76% (up from 13,854 units in October).
• YTD Performance: Cumulative Jan-Nov sales surpassed 133,103 units.

While the overall volume is modest compared to Chinese volume players, the direction of growth is fundamentally against the foreign-brand tide, and the core driver is a massive strategic victory.

The XC70 Playbook: A 94% Jump and the Electrification Pivot

The entire Chinese operation’s momentum is being driven by one fresh model: the all-new XC70. Launched just two months prior, this premium mid-to-large-size SUV is already the brand’s best-seller in China, a textbook example of successful product-led market disruption.

Key XC70 and NEV Performance Indicators:

• XC70 November Sales: 5,354 units.
• Momentum Factor: A staggering 94% month-on-month sales increase.
• Premium Duo Dominance: The XC70 and the steady XC60 combined for over 9,000 units, solidifying Volvo’s place in the premium medium-to-large SUV segment.
• Electrification Accelerator: New Energy Vehicle (NEV) sales reached 6,095 units. Critically, NEVs accounted for 43% of the brand’s total sales in November, an unprecedented 30 percentage point increase from the same period last year.

The global Volvo corporate report even noted the ‘accelerated deliveries of the new XC70 long-range plug-in hybrid in China’ as a key growth area for their electrified segment.

Safety as the New Smart: Dodging the Tech Hype Cycle

The XC70’s rapid market adoption highlights two critical insights for Western OEMs competing in China: First, you must play the NEV game. Volvo’s 43% NEV penetration is a clear indication that a plug-in strategy (PHEV, BEV) is now mandatory for market success. The overall Chinese market has already passed the tipping point where NEVs outsell traditional Internal Combustion Engine (ICE) vehicles.

Second, premium identity must translate into functional value. While domestic competitors like Li Auto and AITO lean heavily on ‘smart cabin’ and advanced driver-assistance system (ADAS) features, Volvo successfully leveraged its perennial strength—safety—by combining it with electrification and practicality. The XC70’s ‘All-Domain Safety’ system, featuring 24 sensing hardware units and 21 active safety functions, resonates deeply with China’s younger, family-focused luxury consumer who demands utility alongside status.

Volvo’s success is not a victory for ‘foreign’ brands writ large, but a strategic win for a brand that has successfully adapted its core DNA (Safety) into the mandatory new market segment (Electrified SUV), bypassing the competitive core of the price war. This makes the brand a crucial case study for any global OEM looking to survive—and thrive—in the world’s most competitive auto market. The success of a model like the XC70 provides a critical counterbalance to the declining fortunes of foreign brands across the board.

As the year-end push begins, all eyes will be on whether this momentum can be sustained into 2026, setting a benchmark for premium foreign brands under pressure.

Recommended Reading

To fully grasp the strategic landscape and the forces driving the Chinese auto market, we recommend the following text:

Book Title: Chinese Electric Vehicle Trailblazers: Navigating the Future of Car Manufacturing

This book offers a data-driven look into the business models, product strategies, and technological advancements that are enabling Chinese automakers to dominate the EV segment, providing essential context for the competitive pressures faced by brands like Volvo.

Further Insight

For more detailed global sales data, please refer to the latest official release from Volvo Cars Media International. Read the global November 2025 Sales Volumes Report here.