Volvo ends wagon production, focuses on SUVs and electrification

Volvo, a brand long associated with its iconic station wagons, has officially announced that it will no longer produce wagon models. The decision reflects changing market trends, declining wagon sales, and the company’s focus on SUVs and electric vehicles (EVs).

The move comes as global demand for SUVs continues to outpace that of wagons and sedans. In 2024, Volvo’s best-selling models were all SUVs, led by the XC60 (230,853 units), XC40/EX40 (173,890 units), and XC90 (108,621 units). Meanwhile, the V60 and V90 wagons saw significantly lower sales, with just 34,138 and 9,939 units sold worldwide, respectively.

Volvo’s CEO, Jim Rowan, has emphasized that the brand’s future lies in SUVs and electric mobility.Higher consumer demand and profitability in the SUV segment have made it the logical focus for the company.

The shift away from wagons is also evident in Malaysia, where Volvo Car Malaysia has decided to discontinue the V60 once the final batch is sold out. This follows the earlier discontinuation of the V90, reflecting weak demand for the wagon body style in the local market.

Like their global counterparts, Malaysian consumers favor SUVs over wagons, leading Volvo to focus on models such as the XC90, XC60, and XC40.

Looking ahead, Volvo is not only betting on SUVs but also accelerating its electrification efforts. The company has made it clear that its future EV lineup will primarily consist of SUV-like models with higher seating positions, aligning with current market preferences.

Although the decision marks the end of an era for Volvo wagons, it represents a strategic shift that keeps the brand competitive in an evolving automotive landscape. As Volvo moves forward, SUVs and electric mobility will be at the core of its product offerings.