Volvo Cars reported on 23 October 2026 that fully electric vehicles accounted for 32% of its worldwide car sales in the third quarter, compared with 22% in the same period of 2025. The Swedish carmaker also outlined the next steps in its electric vehicle product plan, including a new SPA3-based battery-electric model scheduled for 2027.
Fully electric share rises to 32% worldwide
Battery-electric vehicles represented 32% of Volvo Cars’ global sales mix in the July-to-September period, an increase of 10 percentage points year on year. The share of electrified vehicles, including fully electric and plug-in hybrid models, was 53%, up from 46% a year earlier.
In Europe, fully electric cars represented 45% of Volvo Cars’ third-quarter sales. The company described the European market as comparatively resilient, while reporting more difficult conditions in China and the United States.
Volvo Cars separately reported 141,609 worldwide vehicle sales during the quarter, down 10.7% from the corresponding three months of 2025. This figure covers the company’s overall passenger-car business, not only battery-electric vehicles.
2027 SPA3 battery-electric vehicle programme
As part of its product plan, Volvo Cars intends to introduce another battery-electric car based on its SPA3 vehicle architecture during 2027. The company says the model will target a large, lower-priced market segment, with customer deliveries expected to begin after the summer of that year.
SPA3 is the electric-vehicle architecture already used by the Volvo EX60, which is pictured with this report. The EX60 is an existing model and the photograph does not show the as-yet-unveiled 2027 vehicle.
Volvo Cars has announced a wider programme of 13 new vehicles between 2026 and the end of 2030, with products tailored to different regional markets. The company has not confirmed a retail name, price, battery capacity, driving range or complete technical specification for the new 2027 SPA3 model in its third-quarter results announcement.
Third-quarter revenue and operating results
Volvo Cars recorded revenue of SEK 66.9 billion for the third quarter of 2026, against SEK 86.4 billion in the same period last year. Reported operating income was a loss of SEK 5.6 billion, compared with a profit of SEK 6.4 billion a year earlier.
Operating income excluding results from joint ventures and associates and items affecting comparability was a loss of SEK 3.7 billion. On the same adjusted basis, the EBIT margin was negative 5.6%. The company’s reported EBIT margin was negative 8.4%.
Volvo Cars said the results reflected lower sales and pricing pressure in China, tariffs and reduced incentives in the United States, and other adverse financial effects. Chinese revenue declined by nearly 50% year on year, according to the company.
Cost measures and future product investment
In response to the financial results, Volvo Cars announced plans for an additional SEK 5 billion reduction in indirect spending and variable costs. The measures include a structural reduction of approximately 2,500 positions worldwide, around 2,000 of them in Sweden, through a combination of consultant-contract endings, natural attrition and employee exit packages.
Volvo Cars expects the full financial effects of these measures by the end of 2027. It also said its investment level is being reduced by approximately 30% compared with 2024. The company continues to develop new fully electric and electrified models as part of its announced regional product programme.
