Volvo Faces Sales Decline in Q1 2025

The Volvo Group reported a 7% decrease in net sales for the first quarter of fiscal year 2025, amounting to SEK 121.8 billion ($11.2 billion), compared to the same period in 2024. This downturn is attributed to growing concerns over tariffs and their potential impact on international trade, as highlighted by CEO Martin Lundstedt.

Auto Sales Hit Hardest

Automobile sales experienced a notable 9% drop to SEK 89.9 billion ($8.3 billion), with significant losses recorded in Africa, Europe, and South America. Despite these challenges, the company maintained an operating profit of SEK 13.2 billion ($1.2 billion), achieving an operating margin of 10.9%.

Adapting to Geopolitical Changes

"The current geopolitical environment is rapidly evolving, making it difficult to fully gauge the effects of imposed tariffs. However, Volvo's robust regional value chains and global presence position us well to navigate these uncertainties. We are actively adjusting our production capacities and commercial strategies to mitigate the tariffs' impact on demand," Lundstedt explained.