Volvo’s ‘Safe’ Bet on EVs Looks Suddenly Risky. Did They Misread the Market?

When you hear “Volvo,” you think “safety.” It’s a brand built on decades of trust. That’s why the world assumed its transition to electric vehicles would be just as secure. But what if it isn’t? The latest global sales data for June 2025 reveals a story that challenges everything we thought we knew about the EV revolution, showing that even for the giants, the path is fraught with peril.

Volvo’s global sales fell by 12% in June, marking the fourth consecutive month of decline. But the real story is hidden when you look past the headline number and into the powertrains driving the business.

Here’s the global breakdown by powertrain, which paints a much clearer picture of the challenge ahead.

Volvo Cars Global Sales by Powertrain – June 2025 (Unit: Vehicle)

Powertrain Type	June 2025	June 2024	YoY Change	2025 H1	2024 H1	YoY Change
Total	62,858	71,514	-12%	353,780	388,073	-9%
Electrified Models	27,807	34,382	-19%	155,019	173,668	-11%
Pure Electric (BEV)	13,674	18,435	-26%	70,211	90,760	-23%
Plug-in Hybrid (PHEV)	14,133	15,947	-11%	84,808	82,908	2%
Mild Hybrid/ICE	35,051	37,132	-6%	198,761	214,405	-7%
Data Source: Volvo Cars, Compiled by Gasgoo

While pure electric (BEV) sales plummeted by a staggering 26%, plug-in hybrids (PHEVs) have quietly grown by 2% year-to-date, signaling a crucial shift in consumer preference. This trend becomes a dramatic narrative when broken down by region.

Volvo Cars Global Sales by Region – June 2025 (Unit: Vehicle)

Region	Powertrain	June 2025	June 2024	YoY Change	2025 H1	2024 H1	YoY Change
Europe	Pure Electric (BEV)	9,907	14,016	-29%	48,422	71,406	-32%
	Plug-in Hybrid (PHEV)	9,150	10,140	-10%	55,335	52,549	5%
China	Pure Electric (BEV)	126	411	-69%	940	2,168	-57%
	Plug-in Hybrid (PHEV)	942	1,037	-9%	6,085	4,088	49%
USA	Pure Electric (BEV)	912	386	136%	5,577	1,981	182%
	Plug-in Hybrid (PHEV)	2,255	2,929	-23%	13,842	16,670	-17%

The data tells three distinct stories. In its core markets of Europe and China, Volvo’s BEV strategy is facing severe headwinds, with a catastrophic -69% drop in China. However, in the USA, BEV sales have more than doubled, likely driven by new model launches like the EX30 and EX90.

The most telling clue, however, is the rise of the hybrid. In China, while BEV sales collapsed, PHEV sales soared by 49% in the first half of the year. This is the “EV Chasm” in action: consumers, wary of charging infrastructure, range anxiety, and reduced subsidies, are opting for the “safe” middle ground of a hybrid.

Volvo’s predicament is a microcosm of the entire industry’s challenge. The company has already reacted by cutting 3,000 jobs and withdrawing its financial forecast, a move that, ironically, pushed its stock up 4.8% as investors rewarded realism. The message is clear: the all-in, full-speed-ahead approach to EVs is being questioned. For a brand synonymous with safety, the new challenge is no longer just about building safe cars, but about navigating a safe and sustainable transition strategy. Their next move will be a bellwether for all.

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