Volvo Group has reported 7% drop in net sales to Skr121.8bn ($12.65bn) in first quarter (Q1) 2025, that ended on 31 March, from Skr131.2bn in the same period last year.
Sales declined across all regions and segments, except for buses.
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In Q1 2025, both adjusted and reported operating income stood at Skr13.25bn, down from Skr18.15bn in Q1 2024.
This corresponds to an operating margin of 10.9%, compared to 13.8% last year.
The decline was attributed to lower sales volumes, an unfavorable mix of brands and products, lower production efficiency in truck plants in the US and the transition to a new truck platform in North America.
In Q1, net order intake increased by 13% to 55,227 trucks and deliveries decreased by 12% to 48,833 units.
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By GlobalDataDeliveries of heavy-duty trucks decreased by 7%, of medium-duty trucks by 26% and for light-duty trucks the decrease was 36%.
The company also lowered its forecast for North America’s heavy-duty truck market to 275,000 from about 300,000 for the year.
In Q1 2025, the company received 13% more truck orders compared to Q1 2024, totaling 55,227, but deliveries dropped by 12% to 48,833 units. Heavy-duty truck deliveries fell by 7%, light-duty by 36%, and medium-duty by 26%.
The company also cut its forecast for North America’s heavy-duty truck market for the year from around 300,000 to 275,000 units.
Volvo Group president and CEO Martin Lundstedt said: “In Europe, Volvo Trucks had an all-time high market share of 20.1% in heavy-duty trucks. Combined with Renault Trucks, the Groupʼs share was a record 30.6%, We were also the market leader in Brazil with Volvo Trucks on 23.8%.
“Volvo Trucksʼ market share in North America has been hampered by the changeover to the new product platform, whereas Mack Trucks have regained market share as supply chain issues have been worked through.
“In the fast-changing geopolitical landscape, it is too early to assess the full implications from the imposed tariffs.”
Lundstedt added: “In the short term, we therefore work actively with our regional value chains to adapt flows, production capacity and commercial terms to mitigate the effects from tariffs and their subsequent impact on demand. In the long term, transport and infrastructure remain exciting growth industries at the core of driving prosperity.”
Recently, Reuters reported that Volvo Group was planning to cut as many as 800 workers across three US facilities within the next three months.
The move comes amidst market uncertainty and demand concerns, which have been exacerbated by the tariffs imposed by US President Donald Trump.
