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Volvo CE reports decline in global sales due to geopolitical uncertainty, despite growth in South America and Asia and growth in services.
Volvo Construction Equipment (Volvo CE) has started 2025 with a challenging scenario. Despite sales growth in South America and Asia, the company reported an 8% global drop in net sales in the first quarter, totaling 21.117 million Swedish kronor (approximately US$2,21 billion). The main reason? A combination of geopolitical uncertainty and a downturn in key markets such as Europe and North America.
Europe and North America in decline
The 18% drop in Europe and 14% in North America reflects an unstable economic scenario.
The slowdown is mainly due to the repositioning of fleets and the caution of companies in the face of cloudy prospects.
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A geopolitika global has played a fundamental role in this movement, directly affecting market confidence and infrastructure investments.
South America and Asia show positive signs
Despite the global context, Volvo CE found momentum in South America, with 12% growth, driven by the Brazilian market and the resumption of business optimism in Argentina and Chile.
China surprised, with a rise of 42%, driven by government stimulus policies.
Other Asian countries, such as Indonesia and South Korea, also contributed to the slight 1% increase in the region outside China.
While machine sales were down an adjusted 10 percent (excluding currency variations), Volvo’s service solutions showed growth.
This indicates a change in behavior in the sector: companies are prioritizing operational efficiency and maintenance, rather than new investments in fleet.
Volvo's commitment to sustainability remains firm
Despite the challenges, Volvo CE remains focused on the future. The company highlighted its new line of zero-emission machines, presented at the Bauma trade fair, as a symbol of its commitment to the sustainable transformation of the industry.
“As a global company, we are understandably affected by these turbulent times, but we have demonstrated 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.
The performance of Volvo EC in early 2025 reflects a complex global scenario, where sales, geopolitics and structural changes are intertwined.
Still, the brand remains firm, betting on innovation and sustainable solutions to remain relevant in the market.
