Volvo Group Reports Decreased Sales Amid Market Normalization
Despite fluctuations in market conditions, Volvo's operating margins remained stable throughout 2024.
Volvo Group announced a 3% decrease in net sales for 2024, reaching SEK 526.8 billion (EUR 46 billion) as global freight and construction markets normalized after years of strong growth. The company reported this figure in its 2024 Annual Report published Thursday.
Vehicle sales dropped 5% compared to 2023, though service sales increased by 4%. Despite lower volumes, the company maintained profitability with an adjusted operating income of SEK 65.7 billion and an operating margin of 12.5%, down from 14.0% the previous year.
"2024 was a year of normalizing market demand as freight and construction activity came down in many regions after a couple of years of very strong growth," said Martin Lundstedt, President and CEO of Volvo Group, in the report. "It was also a year of continued geopolitical turmoil."
The company highlighted significant product launches across its business areas and new partnerships focused on efficiency and carbon-neutral solutions. Lundstedt expressed gratitude to colleagues and partners worldwide for their contributions during a challenging year.
Founded in 1927, Volvo Group employs more than 100,000 people and operates in nearly 190 markets globally. The company specializes in transport and infrastructure solutions, including trucks, buses, construction equipment, power solutions for marine and industrial applications, and financial services. Volvo shares are listed on Nasdaq Stockholm.
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27 Feb 2025

Angitha Suresh