Volvo Cars said on Friday that it will not be able to meet its previously announced full-year sales and cash flow targets. According to Sina Finance, the company said market conditions have become increasingly difficult and the near-term outlook has continued to worsen.

Volvo Cars said sales have fallen short of expectations under the current market environment, and its full-year outlook has turned more pessimistic. The company said the decline in sales was mainly due to further deterioration in the China market and a slower-than-expected recovery in the U.S. market, while the European market remained resilient.