Strong Q3 margins for Volvo CE despite market slowdown

In Q3 of 2023, the total machine market experienced a contraction says Volvo CE (Photo: Volvo CE)

Net sales declined by 23% year-over-year to SEK 18,809 million (€1.6 billion), with machine sales down 24%. In contrast, service sales rose by 2%, reflecting a growing demand for digital solutions. Notably, order intake increased in South America (59%) and Europe (44%), despite softer demand elsewhere.

Q3 saw a 5% growth in China’s construction equipment market, said to be spurred by government initiatives, while South America also expanded by 5%. Meanwhile, Europe’s market dropped 25% from last year’s highs, and North America saw a 9% decline as dealer inventories normalized. Asia, excluding China, experienced a marginal 2% contraction, driven by government revisions in places like Turkey. 

Melker Jernberg, Head of Volvo CE, said, “We are living in turbulent times and, like other companies, are feeling the effects of a market slowdown. But we are maintaining our leading position with a strong portfolio, the continued roll-out of new products and services and our steadfast commitment to the industry transformation. 

“The ambitions we have set out towards building the world we want to live in remain unchanged and we take pride in working together to balance the priorities of today with our confident vision for tomorrow.” 

In Asia, excluding China, the overall market was slightly down by just 2%. This decline occurred despite growth in countries like India, Indonesia, and the Middle East, while markets such as Turkey faced setbacks partly due to revised government infrastructure investments.