Sales up in 2023 for Volvo CE but ‘weaker market’ ahead

Volvo’s EC230 Electric excavator during customer testing in Europe. Photo: Volvo CE

For the full year 2023 Volvo CE saw sales of SEK104,981 (US$10.03 billion) an increase from SEK100,261 (US$9.57 billion) in 2022. Both Europe and North America saw sales increase over the year, although sales in South America and Asia were both down. Sales in Africa and Oceania also increased.

This yearly sales trend was reflected in the results for the fourth quarter of the year for the OEM. Good earnings and stable sales in Europe and North America were balanced against declines in South America and Asia.

In Q4, 2023 global net sales dropped by 4% to SEK 26,578 (US$2.53 billion), of which net sales of machines decreased by 6% while service sales increased by 6%.

Despite an increase in orders in North and South America – largely due to the low order intake from Q4, 2022 that was driven by unpredictable supply chains – overall global net order intake has remained low, declining by 26%. This has been primarily caused by lower demand in China and cautiousness among customers and dealers in Europe. Deliveries decreased by 27% in Q4 due to the general weakening demand in China and Europe, as well as the slowdown in Brazil.

The OEM added that, while global machine sales are slowing across the industry, service sales for Volvo CE have risen. Europe, North America, Africa and Oceania are reporting steady but softening sales, while Asia and South America are seeing the biggest decline due to slower economic activity.

Volvo Construction Equipment, net sales by market area, in Millions of Swedish Krona (SEK).

In 2023 Volvo CE says that it took further steps to decarbonise construction by establishing net zero partnerships with customers such as CRH and Heidelberg Materials to help them reduce their operational emissions and continuing its rollout of electric construction solutions and introduced zero-emission machines to new regions including Australia and UAE.

“The progress and milestones we have made in 2023 will prepare us for the challenges of 2024. There is no doubt our industry is coming into the new year faced with a weaker market landscape, but now more than ever we will show our ability to perform for today while transforming for tomorrow,” said Melker Jernberg, President of Volvo CE.