The outlook came as third-quarter net sales fell 7% to SEK117bn, when adjusted for currency movements, missing the SEK121bn consensus forecast.

Volvo said that demand "continued to normalise" across most of its markets in the third quarter, with freight and construction activity coming down in many regions compared with very high levels last year. Vehicle sales were down 11% on last year, while the sales of services increased by 4%.

Adjusted operating income declined to SEK14.1bn, from SEK19.3bn previously, as the adjusted operating margin reduced to 12% from 14.4%.

"There is some uncertainty about the macroeconomic development in the near term and this is reflected in our forecasts with relatively flat markets overall for next year," said president and chief executive Martin Lundstedt.

"However, transport and infrastructure are exciting industries with long-term growth, and we are in a good position to continue to support our customers with products and solutions that drive their productivity and profitability."