Sales down for Volvo CE amid “increased geopolitical and market uncertainty”

Volvo CE’s EC230 electric - one of the OEM’s exclusively battery-powered lineup of machines at its stand at Bauma 2025. Image: Volvo CE

For the first quarter of 2025 sales in South America and Asia actually saw an increase in sales but a drop in sales in Europe and North America led to an overall decline for the OEM which cited, “increased geopolitical and market uncertainty” for the drop in these regions.

In Q1, 2025, net sales decreased by 8% to SEK 21,117 (US$2.21 billion). When adjusted for currency movements, net sales of machines decreased by 10%.

Although machine sales are down for the first quarter, Volvo CE saw a rise in service sales, demonstrating the increasing relevance of service solutions, and an overall increase in orders and deliveries.

“As a global company we are understandably affected by these turbulent times, but we have shown resilience in the face of uncertainty and maintained a solid performance today, while moving in the right direction for tomorrow,” said Melker Jernberg, Head of Volvo CE.

“Our industry’s transformation may be slower than we would like, but our commitment remains strong as we continue to invest into building a better world for all – as demonstrated by our pioneering 100% zero-emission lineup at the recent Bauma show.”

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Volvo Construction Equipment (Volvo CE) has announced that its global sales for the first quarter of 2025 declined by 8%. Image: Volvo CE

For the first quarter, the total machine market was flat compared to the previous year with Asia, including China, and South America growing while Europe and North America contracted.

Compared to the historically high levels of the first quarter 2024, Europe declined 18%, while North America declined 14% due to repositioning of fleets and market outlook uncertainty.

The growth in South America (12%) was mainly driven by Brazil, but also improved business sentiment in Argentina and Chile.

The Chinese market improved by 42% on the back of governmental policies to stimulate the real estate and construction segments. In Asia, outside China, the market was up 1% due to growth in Indonesia and South Korea.