Volvo CE offers electric future

Volvo Construction Equipment set a first recently at the bauma 2025 exhibition in Germany, with a range of electric only machines on display. The firm is also recording healthy performance, despite difficult trading conditions.

For the first quarter, 2025, net sales decreased by 8% to SEK 21,117 M (22,877). When adjusted for currency movements, net sales of machines decreased by 10% and service sales increased by 2%. Compared with Q1 2024, a negative brand, market and product mix was partly offset by increased volumes, lower material costs and an improved service business.

However, global deliveries rose 12% in the first quarterQ1, driven largely by increases in South America, Asia and Africa and Oceania – and despite a drop in Europe and North America. Net order intake also increased by 24% with improvements in all markets except South America. In Europe, this was due to dealer inventory levels coming down and end customer sentiment improving, and in North America, it was an effect of more normalized supply compared to the lower intake the previous year. Orders for SDLG branded machines improved by 30% driven by the Chinese market.

Volvo CE has benefied from a busy first quarter with the rollout of its new generation articulated haulers – and the introduction of a brand new A50, alongside several local launches of the new range of excavators in Asian markets. Delivering on its digitalisation transformation, Volvo CE also announced a partnership with software company Unicontrol to integrate its 3D machine control technology into Volvo excavators.

A major recent focus was the company’s groundbreaking all-electric lineup at bauma, the highlight of which was the unveiling of the world’s first electric articulated hauler of its size class, the A30 Electric, which will reach selected customers in Europe in 2026 alongside the new A40 Electric articulated hauler. The pioneering platform was a demonstration of the company’s commitment to sustainable change.

For the first quarter, the total machine market was flat compared to the previous year with Asia, including China, and South America growing while Europe and North America contracted. Compared to the historically high levels of the first quarter 2024, Europe declined 18% as end customer demand remained saturated, while North America declined 14% due to repositioning of fleets and market outlook uncertainty. 

The growth in South America (12%) was mainly driven by Brazil, but also improved business sentiment in Argentina and Chile. The Chinese market improved by 42% on the back of governmental policies to stimulate the real estate and construction segments. In Asia, outside China, the market was up slightly (1%) thanks to growth in Indonesia and South Korea.