Volvo CE continues to work and evolve in a slow first quarter of 2024

Volvo CE demonstrates its commitment to performance and evolution, meeting the expectations of its customers today and tomorrow, while feeling the effects of the industry’s downturn.

In the first quarter of 2024, sales in all regions decreased or remained stable, in line with the expected market decline.

Compared to strong sales in the same period last year, market demand is slowing globally, with lower imports and orderly consumption in Europe and North America due to stronger performance in Asia.

In the first quarter of this year, net sales fell by 9% to SEK 22,877 million from SEK 25,109 million in 2023.

After adjusting for currency movements, gross machine sales decreased by 9% and service sales by 3%. Compared to the first quarter of 2023, negative brand and market mix were partially offset by price recognition and lower material costs.

Meanwhile, deliveries in the first quarter were comparable to last year, and poor performance in Europe and North America was offset by China.

During the period, overall order intake increased by 4%, largely driven by the Chinese market and the SDLG brand, which is increasing after weak order intake in the first quarter of last year. Overall, imports of the Volvo brand decreased in line with market developments in Europe and North America.

Orders in Latin America rose from the bottom in 2023, driven by signs of recovery in Brazil.

Lead the change

However, the more challenging climate has not stopped Volvo CE from continuing its commitment to sustainable change by taking action in several key areas.

First, by introducing its first commercial grid-connected excavator, the EWR240 electric material handler, to select customers earlier this year. This was followed by an earlier collaboration with Sweden’s largest ski company SkiStar, helping to develop a roadmap to fossil-free skiing.

Later in the quarter, Volvo CE announced the testing of an innovative electric shuttle delivery solution for transporting its machines from Belley, France, in collaboration with Volvo Trucks and logistics company Capelle Transports.

Melker Jernberg, Director of Volvo CE, said: “Maintaining profitability remains a top priority and we have taken great steps to ensure we operate as efficiently as possible in these very challenging times.

As the industry feels the impact of this market downturn, we are continuing to emerge stronger – ensuring we remain flexible in our systems while continuing to meet our changing expectations.