Volvo Group Reports 3% Drop in Net Sales for 2024

Key Highlights:

• Volvo Group's net sales dropped 3% in 2024 to SEK 526.8 billion (EUR 46 billion).
• Vehicle sales fell 5%, while service sales grew 4%.
• CEO Martin Lundstedt attributed the decline to slower market demand and geopolitical challenges.
• Volvo focused on product launches and partnerships for efficiency and carbon-neutral solutions.
• Volvo operates in 190 markets.

Volvo Group announced a 3% drop in net sales for 2024, totaling SEK 526.8 billion (EUR 46 billion). This was due to global freight and construction markets returning to normal after a period of strong growth. The company shared this information in its 2024 Annual Report released on Thursday.

Volvo Vehicle sales fell by 5% compared to 2023, but service sales grew by 4%. Even with lower sales, Volvo managed to stay profitable, reporting an adjusted operating income of SEK 65.7 billion and an operating margin of 12.5%, down from 14.0% last year.

The company highlighted major product launches in its business areas and new partnerships aimed at improving efficiency and providing carbon-neutral solutions. Lundstedt thanked colleagues and partners worldwide for their efforts during a challenging year.

"2024 was a year of market demand returning to normal as freight and construction activity slowed down in many regions after a few years of strong growth. It was also a year of ongoing geopolitical challenges," said Martin Lundstedt, President and CEO of Volvo Group, in the report.

Founded in 1927, Volvo Group employs over 100,000 people and operates in nearly 190 markets worldwide. The company specializes in transport and infrastructure solutions, including trucks, buses, construction equipment, power solutions for marine and industrial uses, and financial services. Volvo’s shares are listed on Nasdaq Stockholm.

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CMV360 Says

Volvo Group had a difficult year because the markets slowed down and there were global issues. However, the company still made a profit, which shows they are strong and able to adapt. They focused on launching new products and finding eco-friendly solutions. Even though vehicle sales went down, their service sales grew, showing they can still do well in different areas.