Volvo Increases Production of Electric SUV EX60 in Response to Massive Orders

Swedish automotive group Volvo Cars announced on Wednesday an increase in production capacity for its new, fully electric SUV, the EX60 model. This decision is a direct response to a record number of orders, which significantly exceeded the company's internal forecasts. "Orders for the new EX60 are much higher than we expected," a company spokesperson informed. Consequently, management decided to increase the efficiency of production lines and is also analyzing the possibility of launching additional manufacturing capabilities. This is a clear signal that, despite challenges in the global automotive market, demand for Volvo's premium electric cars remains high. The announcement of increased production comes at a specific moment for Volvo Cars. On the same day, Tuesday, the group published sales data for February, which presented a mixed picture. On one hand, sales of fully electric vehicles, including the EX60, rose by 27% year-on-year, reaching 24,467 delivered cars. Their share of the group's total sales exceeded 24%, a significant step towards the declared goal of an all-electric offering by 2030. On the other hand, Volvo's overall sales volume fell by 14% in February compared to the same period last year. Volvo Cars, owned by the Chinese group Geely, has for years been consistently implementing a strategy of full electrification. The company has committed to offering only fully electric cars by 2030 and aims to become a climate-neutral enterprise by 2040. The transition to electric powertrains is a key element of this transformation, but it also involves challenges related to global supply chains and trade policy. The main factor responsible for the decline in total sales is the restrictive tariffs imposed by the United States on Chinese electric vehicles. Tariffs of 100%, introduced by the administration of former President Donald Trump and maintained by the current administration, significantly burden Volvo's exports from factories in China. The United States is one of the key markets for the Swedish brand, and its vehicles, including those partially produced in China, are becoming less price-competitive there as a result. 24% — share of fully electric cars in Volvo's sales The company is seeking solutions to mitigate the impact of these trade barriers. One of them is developing local production in the United States. The new, larger, electric SUV EX90 is to be assembled at Volvo's new factory in South Carolina. This "production for the market" strategy aims not only to avoid high tariffs but also to shorten delivery times and better respond to the needs of American customers. Despite these challenges, Volvo's management remains optimistic about the long-term growth trend in the electromobility segment and the brand's ability to compete in the global market. Volvo Cars Sales Indicators - February 2026 vs February 2025: Total Sales: +4% (year-on-year, January 2026) → -14% (year-on-year, February 2026); Fully Electric Vehicle Sales: no data → +27% (year-on-year); Share of Electric Vehicles in Sales: approx. 22% (January 2026) → over 24% (February 2026) The situation of Volvo Cars is a microcosm of broader trends in the global automotive industry. On one hand, consumers are clearly switching to electric vehicles, especially in premium segments, as confirmed by the record orders for the EX60. On the other hand, trade policy, especially between the USA and China, is becoming an increasingly sensitive point, capable of disrupting global supply chains and affecting the results of even those firms like Volvo, which have a strong position in Europe and the USA but are dependent on production in Asia. The coming months will show whether the increased EX60 production and the American investment will allow Volvo to balance the negative impact of tariffs and maintain momentum in its electric transformation.