Volvo Faces Sales Forecast Cut Amid EV Tariff Challenges in Europe

Volvo Cars has reduced its full-year retail sales forecast to 12%-15% due to European tariffs on electric vehicles (EVs) made in China. The Swedish automaker, majority-owned by China's Geely, plans to move production of its fully-electric EX30 to Belgium to mitigate the impact of the tariffs.

Volvo Cars has revised its full-year retail sales forecast, anticipating growth of 12%-15%, down from its previous estimate of 15%. The adjustment comes as the company faces European tariffs on electric vehicles (EVs) manufactured in China, impacting one of its key models.

CEO Jim Rowan described the tariffs as a 'short term issue' that the company must address. These tariffs, which can reach up to 37.6%, have been imposed by the EU on Chinese-made EVs, accusing them of benefiting from unfair subsidies, a claim denied by Beijing.

To mitigate the impact, Volvo plans to shift production of its fully-electric EX30 from China to Belgium, with significant ramp-up expected in the second half of 2025. Despite a modest decline in orders for fully electric models, demand for hybrid cars remains robust, and Volvo intends to continue investing in this segment.

(With inputs from agencies.)