By Dominic Chopping
STOCKHOLM--Volvo Car said global sales fell 5.6% on year in the three months to the end of June.
The Swedish automaker, which is majority-owned by China's Zhejiang Geely Holding Group, sold 171,501 cars in the period, down from 181,561 in the same three months the year prior, it said Thursday.
"This reflects the continued challenging operating environment across regions, especially in China, where [the] overall industry continues to remain under significant pressure," it said.
However, retail deliveries improved sequentially from the first quarter as the company saw strong demand for its fully-electric cars in Europe and a modest recovery in the U.S.
Sales in mainland China, Hong Kong, Macau and Taiwan remain under pressure due to intensifying competition, regulatory changes and a weak macro environment, the company said. The region saw a 35% sales drop in the period to 24,882 cars, reflecting the broader industry downturn.
In the Americas, sales increased 4% to 42,630 cars, following a gradual recovery in the U.S. over the last couple of months. The overall market remains impacted by low customer sentiment, though, in addition to increased competition in the SUV segment and subdued demand for fully-electric and plug-in hybrid cars after federal EV subsidies were removed last year.
In Europe and the rest of the world, sales rose 2% to 104,259 cars.
Fully-electric and plug-in hybrid models accounted for 52% of all Volvo cars sold globally amid strong demand for the EX30 and EX40 electric SUVs, it said.
"The EX60 will further strengthen our share in the growing fully electric segment and continues to surpass expectations with robust customer orders," said Chief Commercial Officer Erik Severinson.
"We expect increased interest in the car as customers will now be able to experience it in our showrooms as we start the first deliveries. We are now gearing up to ramp up production in the second half of the year," Severinson added.
Write to Dominic Chopping at dominic.chopping@wsj.com