An “unpredictable” environment saw Scania Group make a “soft start” to 2025, with sales revenues declining by 11% and vehicle deliveries tumbling by 16%, in the first quarter of the year, the manufacturer has revealed.
In a summary of Scania’s performance for the period from 1 January to 31 March 2025, published today (28 April), Scania Group revealed that sales revenue in Q1 fell by 11% to SEK 48.9bn (£3.79bn) - down from SEK 55.1 (£4.27bn) in the same period last year.
Unit sales decreased by 16% to 22,244 vehicles, of which zero emission vehicles amounted to 104 units, up from 46 in the same period last year.
The group’s adjusted operating result was SEK 5.1bn (£0.39bn), down from SEK 8bn (£0.62bn) and adjusted return on sales was 10.5% (2023:14.5%).
In better news, revenue from the service business increased by 4% in the period and incoming orders increased by 23% to 24,762 vehicles, of which zero emission vehicles amounted to 154 units, up from 133 in the same period last year.
Scania hailed the rise in incoming orders as a “positive trend” adding that a strong order intake in Europe more than offset a seasonal slowdown in Brazil, resulting in a book-to-bill ratio of 1.11 for the quarter.
It also noted that Scania’s market share continued to grow in the period, reaching 18.8% (18.6%) in Europe.
However, whilst sales of Scania’s zero emission vehicles rose, the manufacturer warned that industry take up is far below EU climate targets and called for more governmental support.
Commenting on the results, Scania said the group had seen a “a soft start to 2025” but added that it had also made progress in strategic areas such as electrification and the Traton Group integration.
It added: “Incoming orders saw a significant rise, while sales and earnings declined due to lower truck volumes and currency headwinds.
“Sales revenue and adjusted operating results were down in the first quarter compared to the same period last year, largely due to reduced delivery volumes and negative currency effects.
“Vehicle deliveries declined, following the more cautious ordering in the second half of last year. The drop was particularly pronounced for trucks in Europe.
“Challenges related to Scania’s new vehicle software platform impacted the production flow negatively. While significant improvements have been made, achieving full production stability remains a key focus area.”
Christian Levin, president and chief executive of Scania and the TRATON Group, commented: “We continued to grow market share in a highly competitive landscape. While deliveries were lower, the strong order intake is a positive sign.
“We are keeping a close ear to the ground to stay flexible in today’s unpredictable environment.”
Turning to the group’s zero emission vehicles, Levin said: “In the quarter we launched one of Europe’s longest routes for battery-electric trucks in partnership with SKF, LOTS Group and Ahréns Åkeri - demonstrating the viability of long-haul electric transport and achieving significant CO₂ reductions.
“We also announced a pilot partnership with DHL Group to develop and deliver the first electric truck with a fuel-powered range extender. This innovation supports the transition to sustainable logistics without requiring a fully built-out charging network.”
However he warned that scaling up zero emission vehicles is a “monumental challenge”.
He explained: “Today, just 2% of new trucks sold in the EU are zero-emission. To meet the 2030 climate targets, that number must increase to at least 35% - a dramatic shift in under five years.”
He added that Scania, through his chairmanship of the ACEA Commercial Vehicles Board this year, has made clear to the European Commission that zero-emission transport will be neither viable nor competitive without the right conditions in place.
He added: “We call on the EU to accelerate the review of CO₂ standards, well ahead of 2027, and to sharpen the focus on enabling conditions: charging and refuelling infrastructure, energy pricing, and broader economic factors.”
Scania is also making moves to secure its battery supply chain. Levin said: “On the product side we have solid plans and a key focus for Scania has been to accelerate our battery supply strategy.
“As part of this, we have taken important steps toward a more resilient supply chain by diversifying our battery supplier base.
“This will be crucial to support the future scale-up of our battery electric vehicle offering.”
