diff --git a/homeassistant/components/volvo/coordinator.py b/homeassistant/components/volvo/coordinator.py
index db2654da179f..2b70476c6313 100644
--- a/homeassistant/components/volvo/coordinator.py
+++ b/homeassistant/components/volvo/coordinator.py
@@ -263,9 +263,21 @@ class VolvoSlowIntervalCoordinator(VolvoBaseCoordinator):
             api.async_get_odometer,
         ]
 
-        location = await api.async_get_location()
+        # Volvo is returning FORBIDDEN for the location request in case the vehicle
+        # is in an unsupported region. Since we can't know where the vehicle is
+        # located, we silently ignore the failure. If (re-)authentication is needed,
+        # other requests will fail as well and trigger the re-auth flow.
+        location = None
+        try:
+            location = await api.async_get_location()
+        except VolvoAuthException as ex:
+            _LOGGER.debug(
+                "%s - Location not supported for this vehicle. %s",
+                self.config_entry.entry_id,
+                ex.message,
+            )
 
-        if location.get("location") is not None:
+        if location and location.get("location") is not None:
             api_calls.append(api.async_get_location)
 
         return api_calls
diff --git a/tests/components/volvo/test_coordinator.py b/tests/components/volvo/test_coordinator.py
index 8d1a8f0a725a..822e4fa3d225 100644
--- a/tests/components/volvo/test_coordinator.py
+++ b/tests/components/volvo/test_coordinator.py
@@ -130,6 +130,33 @@ async def test_update_coordinator_all_error(
             assert state.state == STATE_UNAVAILABLE
 
 
+@pytest.mark.freeze_time("2025-05-31T10:00:00+00:00")
+async def test_coordinator_location_auth_exception(
+    hass: HomeAssistant,
+    freezer: FrozenDateTimeFactory,
+    setup_integration: Callable[[], Awaitable[bool]],
+    mock_api: VolvoCarsApi,
+) -> None:
+    """Test coordinator setup when location returns VolvoAuthException."""
+    configure_mock(
+        mock_api.async_get_location, side_effect=VolvoAuthException(403, "Forbidden")
+    )
+    assert await setup_integration()
+
+    # Verify no reauthentication flow is started
+    flows = hass.config_entries.flow.async_progress_by_handler(DOMAIN)
+    assert not flows
+
+    # Verify integration loads without location entity
+    device_tracker_states = hass.states.async_all(domain_filter="device_tracker")
+    assert len(device_tracker_states) == 0
+
+    # Verify other entities still work
+    sensor_id = "sensor.volvo_xc40_odometer"
+    state = hass.states.get(sensor_id)
+    assert state.state == "30000"
+
+
 def _mock_api_failure(mock_api: VolvoCarsApi) -> AsyncMock:
     """Mock the Volvo API so that it raises an exception for all calls."""