Volvo Construction Equipment sales in the second quarter dropped 15% compared to Q2 2023 to about $2.27 billion dollars, according to the company. Year-over-year sales in North America dropped 14% in the quarter to about $647 million. Sales in Q2 2023 were about $2.70 billion and $756 million, respectively. Sales in the first quarter were down 9%.
The company cited market slowdowns in Europe and North America. Net sales of new machines dropped 19% for the quarter, and service sales grew 2%. Sales in Asia dropped 11%.
In a press release, the company cited an overall market decline compared to the historically high levels of 2023, particularly in Europe where weakening business confidence has had an effect. Markets are down in North America largely due to a normalization in the replenishment of dealer fleets and lower end-customer demand.
Volvo’s South America market grew, driven by strong demand in Brazil and Peru. China also showed good signs of recovery from last year, supported by recently announced government policies to stimulate the real estate market. Asia, outside China, reported a slight slowdown, caused mostly by lower commodity prices in Indonesia, despite an increase in demand in regions including India and the Middle East.
Sales for the first six months of the year compared to the same period in 2023 are down 13% to about $4.40 billion.
