Volvo, which has been owned by Chinese construction giant Geely Holding Group Co since 2010, had planned to go public by the end of this year.
However, the auto behemoth has had to backtrack on the plans, citing fears over mounting tensions sparked by the US-China trade conflict.
“The issues around trade are hard for us because they impact cars shipped between China and the US,” chief executive Håkan Samuelsson of the Swedish company told Bloomberg on Monday.
“It’s a huge drawback,” Samuelsson told Bloomberg News. “The risk is that these headwinds will increase.”