Geely-owned firm now sees retail sales growing 12% to 15% from a previous projection of at least 15%

Volvo Car AB has lowered its automotive sales forecast for this year due to possible impacts in the wake of the EU’s trade spat with China over EV tariffs.

The Geely-owned firm now sees retail sales growing 12% to 15%, from a previous projection of at least 15%, citing in its Q2 2024 report that it expects “macroeconomic and geopolitical uncertainties to remain.”

It continued: “Once the EU investigation concludes later this year, following the member state votes and potential issuance of the definitive tariffs, Volvo Cars will have a final and clear overview of how tariffs will impact it.”

Its electric SUV, the EX30, is made in China and would therefore be subject to higher duties on shipments to the EU.

In June the firm said it would postpone shipments of the vehicle after the US imposed a duty of more than 100% – up from 27.5% previously – on Chinese EV imports and would instead focus its manufacturing efforts in Ghent, Belgium, in an effort to avoid the high tariffs.