Volvo Car Group said China sales declined 6.7 percent year on year in April to 6,280 vehicles in a sharp reversal of the automaker's strong results in the first three months.
For the year through April, Volvo sales in China rose 7.8 percent year on year to 25,916 vehicles.
The Swedish automaker has enjoyed strong demand for the locally produced XC60 crossover and the S60L sedan.
Last month at the Beijing auto show, the company signaled plans to expand its lineup with the new S90 Excellence concept, which hints at a future flagship sedan that can compete with Audi, BMW and Mercedes.
Volvo also is developing a platform for compact cars with its corporate parent, Zhejiang Geely Holding Group Co., which purchased Volvo in 2010.
But in the short run, Volvo's weak China sales may trigger doubt about its sales goals. The company intends to boost annual China sales to 200,000 vehicles "in the medium term."
That would require a significant increase in the company's sales rate. Last year, Volvo's China sales were virtually flat at 81,588 vehicles.
Source:Automotive News China