Business, Earthmoving News

Volvo CE sales rise in Oceania across Q1

Volvo Construction Equipment has reported a five per cent rise in sales across the Oceania market across the first quarter of 2022, despite a dip in global sales.

Volvo CE’s overall machinery sales rose slightly in Oceania despite a fall in global sales

The rise in machinery sales in the Oceania market including Australia was likely driven by the steady pipeline of infrastructure projects and followed strong performances in other regions.

Across the globe, Volvo CE’s service sales also increased dramatically by 17 per cent, highlighting the importance of service solutions for its customer base.

The construction equipment industry’s largest market – China – didn’t fare as well, as ongoing strict COVID restrictions led to a 33 per cent decline in sales in the Chinese market.

Strict lockdowns and heavy restrictions have played a significant role in the decline in China, but also because of price pressures which remain primarily on excavators in the country.

The regression in sales from a leading market like China resulted in global Volvo CE sales dropping nine per cent in Q1.

Asia, even without sales data from China, was also negatively impacted given the heightened prices of machines in India, resulted in an eight per cent fall.

Volvo CE President Melker Jernberg says that despite the overall sales, the manufacturer is committed to serving their existing customer base and will focus on furthering the sustainability of the industry.

“There can be no doubt that the industry and the wider world itself is in the midst of extremely challenging times, but I am proud that we as an organization are tackling these issues head on – supplying our customers with the products and services they need today, while focusing on the tragic humanitarian crises going on around the globe and taking action on urgent climate change,” Jernberg says.

“During this difficult period, we are keeping up the speed of transformation to more sustainable construction and infrastructure solutions, helping to decarbonize value chains, all the while safeguarding our communities around the world.”

Like Oceania, other key markets fared much better than China, with North American sales rising 11 per cent and Europe up two per cent, despite the latter experiencing 13 per cent growth across the first two months of the year.

South America continues its rise in market demand with the highest increase at 62 per cent with 1090 unites sold across the first three months of the year.

Volvo CE says that while the opening quarter of 2022 has been challenging, much of that has been the lingering effects of the pandemic with the company still demonstrating solid performance in wake of the challenges.

In Q1, Volvo CE launched its first full electric machine in the Asian market – the ECR25 electric compact excavator, which is available in South Korea.

However, Volvo CE’s Australia distributor CJD confirmed there are currently no concrete plans to bring the ECR25 to Australia yet.

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