Volvo swings to a deep loss as China profitability and volumes decline

Citi sees a negative read-across for premium and mass automakers operating in China with non-China-specific products and strategies

Citi analysts said Volvo Car’s deep third-quarter loss requires aggressive restructuring, beginning with cost reductions before the company attempts to regain competitiveness in China through new China-specific models. The analysts identified lower profitability and volumes in China as a key driver of the loss.

Citi analysts wrote that Volvo Car’s good times in China were gone. The bank said Volvo Car CEO Hakan Samuelsson had offered a candid and realistic appraisal of the challenges facing Western automakers in China in 2026. Citi said the comments carried a negative read-across for premium and mass automakers operating in China with non-China-specific product strategies and products.

Citi rated Volvo Car stock at sell with a 15 Swedish kronor target price. Volvo Car shares last closed at 10.70 kronor.

At the 2026 World Investment Forum in Doha, Bahrain’s Minister of Industry and Commerce Abdulla Bin Adel Fakhro said the country was working to replace its reliance on imports by starting domestic manufacturing and local production.

Fakhro said Bahrain imports approximately 89% of its food supply. The country has also been heavily affected by the closure of the Strait of Hormuz, according to Fakhro.

The minister outlined 12 sectors that could be produced locally. He sought investment from Bahrain’s own sovereign wealth fund, along with co-investment from Gulf Co-Operation Council partners, to achieve greater self-sufficiency.

Citi analyst Andy Li said Brazil’s election was likely to have a mildly positive impact on China International Marine Containers, with President Luiz Inacio Lula da Silva remaining in office. Li cited continuity in policy, management at state-run oil company Petrobras and diplomatic relations.

Li expected CIMC to explore further opportunities in regions outside Brazil. Citi rated CIMC’s H shares at buy with a 12.3 Hong Kong dollar target price. The shares were up 3.05% at HK$6.93.