Volvo's net sales decreased by 12% year-on-year in the third quarter of 2024, amounting to SEK 117bn (€10.27bn).
Adjusted operating income for the same period came in at SEK 14.1bn, down from SEK 19.3bn a year earlier.
Sales of vehicles were 11% lower than last year, and demand for trucks was particularly reduced.
"Our total truck deliveries declined by 16% compared with the prior year largely driven by the light-duty vehicle model change-over in Europe which started in the spring," said Volvo CEO Martin Lundstedt.
"Deliveries of heavy-duty trucks were 9% lower compared with the very strong development last year," he added.
Demand for Volvo's construction equipment, meanwhile, has slowed down.
Deliveries of machines decreased by 12% compared to the third quarter of 2023, while net sales decreased by 20% adjusted for currency.
The firm is also focused on the green transition, noting that more needs to be done to boost demand for electric trucks.
Volvo stated that charging infrastructure needs to be expanded and that the cost of ownership must come down, potentially through the introduction of incentive schemes.
Battery plant cancelled
These comments come after Volvo announced last month it would be postponing the construction of a battery plant in Mariestad, Sweden.
It's not yet clear whether this will delay the planned start of production.
Amid disappointing demand for most products, bus markets were a bright spot for Volvo in its most recent earnings update.
Net order intake for buses increased by 6% in the third quarter compared to the same period last year.
For its overall operations, Volvo anticipates relatively flat markets for next year in light of uncertain economic conditions.