Volvo Trucks of Sweden gradually reduced its production, as demand volume in the markets returned to normal after years of unprecedented order book increases due to supply chain disruptions.

Volvo, the world's second largest truck manufacturer, stated that "the increase in demand volume during 2022 and 2023 was largely absorbed by the transport industry and lead times, especially in Europe, and demand volume has largely returned to its normal levels."

The company pointed to the return of demand volume to average levels across various sectors and markets.

Volvo added, in a statement reported by Bloomberg News Agency, that net truck orders fell by 9% in the last quarter of last year to about 49,000 trucks, driven by a 24% decline in order volume in Europe.

Volvo CEO Martin Lundstedt said in press remarks that the company will reduce production at its plant in Tuve, Sweden, but other plants will also be affected by production cuts.

Volvo also cut its forecasts for heavy-duty truck registration rates in Europe from the record levels achieved last year, which reached 280,000 trucks, but it did not adjust its forecasts for North American markets.