North America helps keep Volvo CE’s sales steady

Volvo CE’s newly-electrified L120H wheeled loader. Photo: Volvo CE

Strong growth in North America played a key role in a modest increase in Volvo Construction Equipment’s (Volvo CE) third quarter 2023 sales.

The OEM has announced that in the third quarter of the 2023 overall net sales amounted to SEK 24,296 billion (US$2.22 billion), a modest increase from SEK 24,238 billion (US$2.21) in the same quarter last year.

Sales in North American have grown by 10% in the year to date, supported by continued large infrastructure projects and strong commercial construction that offsets a weaker residential sector.

The European market slowed slightly, due to a weakening macroeconomic outlook and increasing interest rates, but still maintained a modest 4% growth.

The market in South America declined by 25% on the back of low investment levels in Brazil and low business confidence among customers.

Elsewhere, the Chinese market demand weakened substantially compared to last year with a drop of 40%, caused largely by a decrease in real estate investments, and sales also slowed in South Korea and Indonesia. However, other Asian markets have seen an increase in demand, such as India, Japan and the Middle East, resulting in a steady development rate of 3%.

During the quarter, global deliveries decreased by 21% due to a slowdown in Brazil and China as well as supply challenges in Europe, while net order intake also declined by 27%. This was largely driven by lower demand in China and cautiousness in Europe. North America, however, is providing some strength with a 33% increase in deliveries and a 196% increase in orders.

“We have performed well this quarter during a challenging economic environment while continuing to drive the long term transformation towards more efficient and sustainable construction solutions,” said Melker Jernberg, Head of Volvo CE.