ESKILSTUNA, Sweden, June 10 - Volvo Group reported that customer demand and deliveries across its businesses in Europe are holding steady at good levels during the second quarter. In North America, the group said demand continues to be strong and that production is being increased gradually to meet that demand.
The company highlighted a mix of headwinds and tailwinds in its operating environment. Management said cost inflation is trending upward, which could pressure margins, while concurrently high utilisation of customers' trucks and machines is supporting aftermarket and service activity.
On growth expectations, Volvo Group said it anticipates that its Trucks and Volvo Construction Equipment units will outperform their historical growth rates. The company did not attach a specific timeframe to that projection.
Volvo Group also set out targets for two of its strategic units. The Autonomous Solutions business — focused on self-driving trucks — aims to begin driverless on-highway operations by the first quarter of 2027 and expects to approach roughly $3 billion in sales within five years, a trajectory management said will support group profitability.
Separately, the Engine and Power Systems unit, Volvo Penta, plans to double sales in the coming years, according to the group.
The group is one of the largest global manufacturers of trucks, buses and construction equipment. At 0753 GMT the share price was unchanged compared with the Tuesday close.
Context and implications
Volvo's statement underscores a differentiated regional demand picture - stable, good activity in Europe and stronger momentum in North America with an orderly production ramp. The combination of rising input costs and elevated utilisation of equipment suggests mixed pressure on margins offset in part by stronger service revenues.
Operational focus areas highlighted by the group
- Maintaining delivery levels in Europe while increasing North American production.
- Managing cost inflation amid supportive service activity driven by high equipment utilisation.
- Driving longer-term growth via Trucks and Volvo Construction Equipment, with no specified timeframe for outperformance.
- Pursuing ambitious revenue and operational milestones for Autonomous Solutions and Volvo Penta.