Volvo Cars has withdrawn its previous full-year sales and cash-flow guidance after reporting difficult market conditions during the third quarter.
The Swedish automaker sold 141,609 vehicles globally during the quarter, representing a decline of 10.7% compared with the same period last year.
Volvo said the biggest challenges came from China, where automotive market conditions continued to deteriorate.
The company also pointed to a slower-than-expected recovery in the U.S. premium vehicle market.
Europe provided a more stable environment.
Volvo said European performance remained resilient, supported by demand and orders for fully electric vehicles.
The contrasting regional results demonstrate the different conditions facing the global automotive industry.
China remains one of the world's most competitive vehicle markets.
Domestic manufacturers have expanded rapidly, particularly in electric vehicles, while aggressive competition has increased pressure on established brands.
Volvo is majority-owned by Geely Holding, meaning its performance is closely connected to developments in the Chinese automotive industry.
The company has also invested heavily in electrification.
Fully electric vehicles remain an important part of Volvo's future strategy, but the transition has created significant costs.
Automakers must spend heavily on batteries, software, production systems and new vehicle platforms.
At the same time, they must maintain profitability while consumer demand changes.
Volvo said the difficult market conditions led analysts to reduce their expectations for the premium vehicle market in 2026.
The company therefore decided that its previous full-year targets were no longer realistic.
The announcement represents a significant change in Volvo's financial outlook.
Investors are watching the company closely as it attempts to improve competitiveness.
Volvo has also appointed Klaus Zellmer, currently associated with Skoda, as its incoming chief executive.
The leadership change comes at a significant time.
The company needs to manage its transition toward electric vehicles while dealing with competition in China and slower demand in the United States.
Volvo's European performance provides a more positive element.
Demand for fully electric vehicles remains strong in parts of Europe, giving the company an important market in which its electrification strategy can continue developing.
However, the global picture remains mixed.
The automotive industry is dealing with tariffs, changing consumer preferences, higher development costs and intense competition.
These factors make it difficult for manufacturers to predict annual sales and cash flow.
Volvo's withdrawal of guidance therefore reflects the broader uncertainty affecting the premium automotive sector.
The company will now focus on managing costs and improving its product range while continuing its electrification strategy.
The next financial reports will be closely watched for evidence of whether the market environment is stabilizing.
For Volvo, the immediate challenge is balancing long-term investment with short-term financial performance.
The company remains committed to its global strategy, but the latest sales figures demonstrate that conditions in several important markets have become more difficult.
