Volvo XC90 sales rise in the U.S. despite its long run on the market

Volvo’s XC90 posts best U.S. sales year ever

Many vehicles fade with age, but the Volvo XC90 showed that time does not always slow success. The three-row SUV delivered its strongest United States sales year ever in 2025, even after being on the market for more than a decade.

Volvo sold over 40,000 XC90 units during the year, setting a new record for the nameplate. That achievement stood out sharply during a period when the brand faced broader sales pressure across its lineup.

A surprise win in a tough sales year

Volvo reported total U.S. sales of 121,607 vehicles in 2025, marking a 2.9 percent decline, according to Volvo Cars. That drop makes the XC90 performance even more notable against the overall trend.

The XC90 stood apart as demand softened for other Volvo models throughout the year. It emerged as the brand’s most unexpected bright spot during an otherwise mixed sales period.

XC90 sales reached a historic milestone

Volvo confirmed that 40,217 XC90 vehicles were sold in the United States during 2025, according to Volvo Cars. This marked the first time the model had crossed the 40,000-unit mark in a single year.

The previous record of 39,920 units was set in 2023. The new total officially makes 2025 the strongest year for XC90 sales since the model’s introduction in 2002, according to Autoblog.

A decade old design still connects

The second-generation Volvo XC90 launched in 2015 and remains on sale today. Many industry watchers expected a full replacement long ago; yet, buyers continued to show steady interest, according to Autoblog.

Volvo’s decision to keep the aging platform surprised some critics at the time. Sales results now suggest that extending the model’s life delivered stronger returns than expected.

Facelifts kept the XC90 feeling fresh

Volvo updated the XC90 twice since its 2015 launch to maintain buyer appeal. The most recent refresh arrived for the 2025 model year.

Changes included a redesigned front look, upgraded cabin materials, improved sound insulation, and a new 11.2-inch touchscreen. These updates helped the SUV stay competitive without a full redesign.

Cost savings played a quiet role

Regularly updating an existing platform costs significantly less than developing a new one from scratch. This approach allowed Volvo to refine the XC90 while keeping development spending under control.

The approach mirrors Dodge’s long-running Durango plan, which also delivered strong late-career sales. Both the XC90 and Durango succeeded without undergoing full generational replacements, showing that strategic updates can extend a model’s life and maintain buyer interest for many years.

XC60 quietly outpaced its sibling

While the XC90 drew the most headlines, the XC60 actually led overall Volvo sales in the United States in 2025. The smaller SUV sold 41,105 units, showing steady demand across the mid-size segment.

That total represented a six percent increase from the previous year. It also marked the second strongest sales year for the XC60 after its record performance in 2021, confirming that Volvo’s compact SUV lineup continues to resonate with American buyers.

Electric models showed mixed results

Electrified Volvo vehicle sales declined 22.9 percent in 2025, reflecting broader market adjustments. Despite the drop, these vehicles still accounted for 27.2 percent of the brand’s total U.S. sales, underscoring their ongoing importance to the lineup.

Fully electric vehicle sales alone moved strongly in the opposite direction, increasing 91 percent year over year. Growth was driven mainly by demand for the EX90 and EX30 models, which are helping Volvo expand its electric offerings in the U.S. market.

EX90 and EX30 gained momentum

Volvo sold 3,913 EX90 vehicles in 2025, marking a remarkable 356 percent increase from the prior year. December became the model’s strongest month, signaling a growing interest from consumers.

The smaller EX30 also had a breakout year, reaching 5,409 sales across the United States. This dramatic increase reflected the model’s wider availability and rising awareness, helping Volvo grow its fully electric vehicle market share quickly in 2025.

Tax credit changes hit electrified sales

Volvo reported that falling electrified vehicle sales were linked to the removal of federal tax incentives. The change affected both fully electric and plug-in hybrid models nationwide, slowing the overall momentum of electrified sales.

Electrified vehicles accounted for only 16.8 percent of fourth-quarter sales in 2025. That marked a sharp decline compared with the same period in 2024, highlighting the influence of government incentives on consumer adoption of electric and hybrid models.

Wagons quietly exited the market

Volvo did not break out individual sales for models, including the V60 Cross Country. Volvo’s wagons remain a niche in the U.S. For example, Volvo’s own sales reporting shows the V60 Cross Country at 3,630 units year-to-date in 2025 (through November), while the V90 Cross Country totaled 731 over the same period.

Volvo has said it will take final U.S. orders for this generation of wagons in early 2026, with V60 Cross Country production ending in April 2026, effectively closing out the brand’s current wagon chapter in the U.S.

Wondering how the new Frontier PHEV could shake up the off-road SUV segment? This article explores the exciting possibilities in detail.

December offered a small boost

Volvo sold 14,193 vehicles in the United States during December 2025, representing a modest 1 percent increase over the previous December. This small gain provided a late-year boost for the brand.

Total fourth quarter sales reached 30,906 vehicles, a decline of 13.4 percent year over year. Despite the late-year improvement, the quarter highlighted the challenges Volvo faced in 2025, as it balanced strong individual model results with an overall softer market.

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This slideshow was made with AI assistance and human editing.

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