Volvo CE feels impact of market downturn with Q1 results

Volvo’s new EC500 (PHOTO: Volvo)

The OEM said that this result was in line with the expected market downturn and, compared to the strong sales of the same period last year, market demand is softening across the globe.

For the first quarter this year, net sales dipped by 9% to SEK 22,877 M (US$2.09 billion) from SEK 25,109 M (US$2.30 billion) in 2023. Adjusted for currency movements, net sales of machines have decreased by 9% and service sales by 3%.

Volvo CE added that deliveries in Q1 were on a par with last year, with a lower performance in Europe and North America offset by China.

During the same period, net order intake increased by 4%, largely driven by the China market and the SDLG brand which is rising after the low order intake in the previous year’s first quarter.

Overall, order intake for the Volvo brand decreased in line with market development in Europe and North America. Orders in South America increased from a low level in 2023, driven by signs of a recovery in Brazil.

Sales in Europe declined by 17% in the first quarter of the year compared to the same period in 2023. North America and Asia both saw a 2% fall in sales with Africa and Oceania dropped by 25%. Sales in South America remained at the same level.

“Maintaining profitability remains a high priority and we have taken great steps to ensure as strong a performance as possible during these tougher times,” said Melker Jernberg, Head of Volvo CE.

“While the industry feels the effects of this market downturn, we are maintaining our momentum to come out stronger – ensuring that we remain flexible in our systems while continuing to deliver on our transformation ambitions.”