Volvo Group announced on Wednesday that its net sales for the first quarter of fiscal year 2025 fell by 7% to SEK 121.8 billion ($11.2 billion) compared to the same quarter in 2024. The decline comes amid what CEO Martin Lundstedt referred to as "increased uncertainty surrounding tariffs and their impact on global trade."
Auto sales were particularly affected, falling 9% to SEK 89.9 billion ($8.3 billion), with significant declines in Africa, Europe, and South America. Nevertheless, operating profit amounted to SEK 13.2 billion ($1.2 billion), corresponding to an operating margin of 10.9%.
"In the fast-changing geopolitical landscape, it is too early to assess the full implications from the imposed tariffs. However, we have strong regional value chains and global capabilities. In the short term, we therefore work actively with our regional value chains to adapt flows, production capacity and commercial terms to mitigate the effects from tariffs and their subsequent impact on demand," Lundstedt added in his comment.
