The first quarter has passed, and many people are expressing concerns about the future trend of the automotive market this year. They worry that against the backdrop of drastic changes in the international situation, the Chinese automotive market will accelerate structural changes, and the rapid increase in new energy penetration will leave most automakers scrambling. They also fear that as consumer confidence continues to be affected by external factors and suffers setbacks, it will ultimately lead to the entire market development falling into a downward spiral. In this situation, what is the response of automakers? Should they remain static and observe the changes, or adjust their direction in time to catch up? Regardless of the choice, ultimately, everything should prioritize "survival" at the forefront of their development strategies. After years of trial and error, traditional automakers naturally view 2026 as a crucial year to test the results of their transformation. Especially after the Chinese automotive market has driven away so many foreign automakers, most of them, besides actively seeking paths for technology localization, can only put aside their self-insistence. This year marks the 99th anniversary of Volvo Cars, and it is only one year away from becoming a "century-old brand". Perhaps it has been more than a decade since it was fully acquired by Geely. During this period, the past ups and downs have been covered by new beginnings, and the skills learned under Ford have been replaced by self-accumulation. And today, Volvo has a more thorough understanding of the Chinese market than any of its competitors. However, while looking back on history, we also need to look forward to the future. It seems that relying solely on existing experience is not enough for Volvo to safely embark on a new path.

In recent years, Volvo has always appeared to be very proactive in its transformation. From its initial call for comprehensive electrification to the refinement of its full electric product matrix consisting of "48V mild hybrid, plug-in hybrid, and pure electric vehicles", and then to simply leveraging Chinese strength to achieve a magnificent turnaround, Volvo is actually quite unfamiliar compared to the likes of BBA. Nordic companies have always had their own logic, and although they are not to the extent of being unyielding, it is absolutely impossible for them to give up their beliefs due to external circumstances. However, with the cautionary tale of Saab, Volvo's development in recent years has been infused with some new thinking. Currently, with the emergence of the XC70, Volvo has indeed tasted the sweetness of the technological dividend in China. For the future, if Volvo wants to navigate through the turbulent waters of this automotive market transformation or surpass its traditional rivals, it needs to make choices again. Time waits for no one. Should Volvo continue to learn from "Hangzhou Bay" or return to Gothenburg to accompany its European peers in their self-importance? The outside world is waiting for a new answer. 01 History is ultimately just the past. With the development of the automotive industry today, there are many automotive brands with a century-long history. Even Skoda, which has just been abandoned by the Chinese market, was founded in 1895, making it a well-established century-old brand. However long the history, "survival" is ultimately an eternal issue that everyone cannot underestimate.

Just like during these 99 years, Volvo Cars has experienced multiple ownership changes. Whether it was operating independently from its parent company SKF until its acquisition by Ford in 1999, or being acquired by Geely in 2010, which gave Geely 100% ownership of Volvo Cars, these were all choices made to survive. The global automotive market is always changing rapidly, and for any automaker, no one can remain stubborn in the face of reality. If one wants to preserve their DNA, the key lies in where the company can position itself. The wheel of history keeps rolling. We can always see that Skoda and SEAT, rescued by Volkswagen, have leveraged their position to become "other people's children" and dominate their respective markets; Saab, abandoned by General Motors, failed to recognize the importance of input-output ratio and ended up in a mess, collapsing on the eve of the new energy transformation; Rover and MG, both from the UK, were abandoned by BMW, with one being completely shelved and the other being deeply transformed by Chinese automakers, becoming vehicles for earning foreign exchange, empty in spirit but lacking soul... During Volvo's formal divestment of its "luxury" name in the process of its joint venture in China, it is clear that Volvo has had two distinct experiences. During the "Changan Volvo" period, the Nordic luxury represented by the S40 and S80 had too many Ford genes, and it was always suppressed by BBA, failing to break out. Even though there were unique products like the C30 and C70 available through import channels, Volvo seemed like a participant in the flourishing Chinese automotive market at that time, rather than a dominant player among luxury brands.

In the past decade, when Geely took over from Ford at Volvo, there were often doubts from the outside world about whether the stubborn Norwegians could see reality through their setbacks and learn to bow their heads in reality. Now, more than a decade later, Ford would never have imagined that the once-losing brand, treated as a negative asset and liquidated, would become a driving force for the development of China's automotive industry, and in the process, return to its original position. Of course, compared to many acquired brands, Volvo's most valuable brand spirit has never been swayed by reality. The Polstar sports division was spun off to become an electric vehicle brand, and the blue lightning bolt that belonged to Volvo was no longer seen on the touring car race track. But ultimately, the soul of Volvo that has come to this point belongs to the Nordic region, and its advocated safety philosophy has never been abandoned. In the Chinese market, there have been too many luxury brands under the umbrella of BBA. Acura, Infiniti, Lincoln, DS, Genesis, Alfa Romeo, and so on, almost all luxury brands from different countries have established a foothold in China, seeking to find their own niche in the increasingly large Chinese automotive market. Among them, some advocate ultimate luxury, trying to please users with material accumulation; some hope to complete a reinterpretation of luxury car aesthetics with designs that surpass the times; and some regard sports as an absolute advantage for the brand to break through its circle, determined to impress people with its handling

Compared to others, Volvo is definitely not the most outstanding. Without mentioning luxury, technology, and sports, it adheres to the brand philosophy of environmental protection and safety, which mostly resonates with a certain group of people. The brand's image is one of modesty and not showing off. However, with the increasing intensity of competition and the uniqueness of the Chinese automotive market, automakers are always required to balance the relationship between brand and sales. In just a few years, the pace of industrial transformation has accelerated. Under heavy pressure, almost all foreign luxury brands have fled China, leaving only Cadillac, Lexus, and Volvo to persist. Is this a stroke of luck after surviving a disaster? Obviously not. Everyone who has survived is well aware that the Chinese automotive market, surrounded by price wars and public opinion battles, requires the ability to keep up with the times, rather than luck. Overseas, Volvo can continue to compete with rivals by launching products such as the EX90 on the SPA2 platform. But in China, to meet the demanding needs of new energy users, everything needs to be planned carefully. In recent years, the EM90 has been Volvo's test product for its electric transformation in China, the EX30 is a new work empowered by Chinese technology, and the all-new XC70 is a typical representative of implementing the China strategy. When we discuss all these together, there is no doubt that Volvo, on its 99th anniversary, is actively seeking a new survival model in China. The results further prove that today's Volvo has no way out.

02 Radical market changes necessitate new thinking

Since its inception, no luxury car brand has been as dedicated to a hidden gem as Volvo, relentlessly focusing on vehicle safety. However, in this era of survival of the fittest, as the underlying logic of industry development shifts, and everyone pursues the most outwardly visible aspects, the idea that good things need no advertising seems to be constantly disrupted by fickleness. In 2025 alone, Volvo's global sales amounted to 710,000 vehicles; its annual revenue stood at SEK 357.3 billion, marking an 11% year-on-year decline; its operating profit (EBIT) for the year was SEK 300 million, a 99% drop from SEK 22.3 billion in 2024; and its operating profit margin (EBIT Margin) was merely 0.1%, compared to 5.6% in 2024. In terms of the external environment, factors such as trade tariffs, weak demand, price pressure, and the cancellation of electric vehicle subsidies in the United States have indeed made global automakers increasingly troubled, especially European automakers, as evidenced by the significantly worse data reflected in each annual financial report. A classic example is Stellantis. Facing new challenges, Volvo Cars chose to recall Hakan Samuelsson as its CEO last year. Under his leadership, Volvo has streamlined positions to reduce costs and increase efficiency, while also hoping to achieve synergies in supply chain and other aspects through closer collaboration with Geely Automobile. Looking at the results, whether it's the launch of the all-new XC70 or the persistence in the full-range hybrid technology path, Volvo has provided its own answer to solving its survival issues in 2025.

As we enter 2026, the entire industry has witnessed numerous "black swan" events. The mere panic among consumers regarding fuel vehicles caused by multiple price hikes in oil is enough to make all enterprises still selling fuel vehicles exceptionally nervous. On this 99th anniversary, it is a joy for all industry colleagues to extend our blessings to Volvo, based on its historical contributions to automotive safety. However, what deserves our deeper consideration is whether Volvo is fully prepared to embrace uncertainty. In the upcoming product launch plan, the officially released EX90 and ES90 will become Volvo's flagship electric models, while the XC70 will continue to fulfill Volvo's mission of achieving volume sales. No one would find this plan inappropriate, and besides, the recently released EX60 also lays the groundwork for the future electrification process. After all, with the withdrawal of V-series and T8 powertrain models from the market, product gaps can always be filled. For many long-time Volvo users, the transition between old and new product lines may evoke a sense of nostalgia. The emergence of a large number of new products is challenging the model matrix that Volvo has built over the past 20 years. Against this backdrop, Volvo in China should answer the question: in the face of domestic brands aggressively launching new vehicles that surpass them in luxury, technology, and sportiness, what exactly is the advantage of "century-old" Volvo? In recent months, the market performance of the new XC70 has been quite good, catering to potential users in the 300,000-yuan SUV market alongside the XC60. That is to say, to secure a future in China, targeted solutions are more practical than relying on global models to increase premium prices.

We are not sure whether the EX90 and ES90, which are both based on the SPA2 platform, can stand out amidst the onslaught of competitors like NIO, Li Auto, and AITO in the same price range. Given the current market situation, when the top leader of BBA in China is replaced due to years of failure in electric vehicle development, Volvo definitely needs more support on this path. "A Volvo, half a history of safety." This is Volvo's most spiritual asset and the core charm it has left to its users over 99 years. Therefore, at this special moment when the brand is moving to the next level, we certainly do not want this DNA to become a shackle that restricts Volvo's progress. Strict requirements for safety are a principle, but they are only the foundation for Volvo to confront the new era. Being in China, when the Audi Q6 e-tron fails to change its predicament and the all-new BMW iX3 and Mercedes-Benz GLC pure electric models are ready to launch, Volvo needs to make changes in every upcoming product to meet the quality requirements for intelligence and luxury at prices above 300,000 yuan. This is a compulsory question given by the times, and it is also the latest expectation that more Chinese users place on Volvo. After this year, next year will be the turning point for "Volvo Centenary." Before that, Volvo does not have much time left for forward-looking planning.