Daimler truck
According to Daimler Truck, the truck market in the period from June to August 2023 to date (January to August 2023) continued to reflect high demand, with the North American heavy-duty truck market (Class 8) growing by around +6% in June and August 2023 year-on-year (YoY) and by around +16% YoY in the first eight months of the year. In the EU30 area (EU + UK, Switzerland and Norway), the heavy-duty truck market increased by more than 42% YoY in June and August 2023, also influenced by the mandatory introduction of the Intelligent Speedometer version 2, which led to some advance purchases. According to the truck manufacturer, demand in the region has so far increased by around +27% YoY.
Against this backdrop, Daimler Trucks sold 128,861 vehicles worldwide in the third quarter of 2023 (-4.5% year-on-year). The company reported that unit sales in the North American truck segment declined primarily due to supplier bottlenecks. In the Mercedes-Benz segment, there was also a modest decline in unit sales, mainly due to the introduction of the Euro VI emission standard in Latin America, including a significant decline in Brazil, the largest regional market. Conversely, in the EU30 region, Mercedes-Benz sales increased by 6% year-on-year in the third quarter of 2023. In the Asian truck segment, unit sales decreased by 8% in the third quarter of 2023, affected by market developments in Indonesia and supplier bottlenecks.
In the third quarter of 2023, the truck manufacturer generated revenue of €13,860 million, up 2.6% year-on-year, and adjusted EBIT of €1,340 million (up 5.3% year-on-year). In the first nine months of 2023, Daimler Truck generated revenue of €40,940 million, up 13.2% year-on-year, and adjusted EBIT of €3,718 million, up 43.3% year-on-year.
Zero Emission Trucks
Daimler Trucks continues to pursue a dual-track strategy with hydrogen and battery-powered vehicles. In September, the Mercedes-Benz GenH2 fuel cell truck completed a record distance of more than 1,000 kilometers on a single tank of liquid hydrogen. According to the company, the development of the GenH2 truck is on track, and the vehicle is expected to enter series production in the second half of this decade.
In October, Mercedes-Benz Trucks launched a long-range electric truck, the eActros 600, a battery-electric truck with a range of 500 kilometers without intermediate charging. The vehicle’s battery capacity is more than 600 kWh, and the batteries can be charged from 20% to 80% in around 30 minutes at charging stations with a power of around one megawatt. Serial production is scheduled to start at the end of 2024.
Daimler Trucks, Cummins, PACCAR and EV Energy are teaming up to accelerate battery cell production and expand the battery supply chain in the United States. The planned joint venture aims to produce battery cells for electric commercial vehicles as well as for industrial applications. Total investment in the 21-gigawatt-hour plant is expected to be between $2 billion and $3 billion.
Volvo AB
In the third quarter of 2023, Volvo AB achieved net sales of SEK 132.4 billion, up 15.2% year-on-year (+9% year-on-year, when adjusted for exchange rate effects), and adjusted operating income of SEK 19.1 billion, up 61.0% year-on-year. In the first nine months, the company achieved sales of SEK 404.6 billion, up 19.3% year-on-year, and adjusted operating income of SEK 59.3 billion, up 54.7% year-on-year. In the third quarter of 2023, Volvo AB offset cost inflation with price increases and continued to manage supply chain disruptions.
In the third quarter of this year, Volvo AB saw new truck orders fall by 27% year-on-year (to 47,202 vehicles), which the company attributed to “normalization” of demand and the gradual opening of order books. Conversely, Volvo AB’s deliveries during the period increased by 4% year-on-year to 55,274 trucks. The truck maker expects the core truck markets to remain strong for the rest of this year as the company continues to meet deliveries in its large order book. However, Volvo AB expects lower market levels for 2024. In the third quarter, the company also noted supply disruptions that had a negative impact on productivity and operating expenses but limited the resulting impact on the truck maker’s actual deliveries.
Zero Emission Trucks
Over the 12 months to the end of the third quarter of this year, the Volvo Group delivered 4,141 units of fully electric commercial vehicles across its business lines and had 5,985 orders. Renault Trucks has been receiving heavy-duty electric orders since the third quarter and was due to start series production in Bourg-en-Bresse, France, in November.
The truck maker sees growing demand for clean, efficient and safe urban transport. In October, it announced it would partner with Groupe Renault and CMA CGM to target this demand with a completely new generation of fully electric, software-defined trucks. Production of the trucks is scheduled to begin in 2026.
Bakar
According to Paccar management, the company achieved a record net income for the third quarter of 2023. In the third quarter, the truck manufacturer achieved net sales and revenue of $8,696 million, an increase of 23.2% year-on-year, and net income of $1,229 million, an increase of 59.7% year-on-year. In the truck segment, Paccar achieved sales and revenue of $6,636 million in the third quarter of 2023, an increase of 27.7% year-on-year, and net profit before tax of $961 million, an increase of 123.2% year-on-year.
In the nine months ended September 30, 2023, PACCAR achieved net sales and revenue of US$26,051, up 25.9% year-on-year, and net income of US$3,184 million, up 52.3% year-on-year. In the truck segment, in the first nine months of 2023, PACCAR achieved sales and revenue of US$19,878 million, up 30.5% year-on-year, and net profit before tax of US$2,804 million, up 148.3% year-on-year.
In terms of unit sales, in the third quarter of 2023, PACCAR achieved deliveries of 50,100 units, up 12.8% year-on-year, including +12.7% year-on-year in the U.S. and Canada, +9.0% in Europe and +20.9% in other regions. In the first nine months of 2023, the truck manufacturer achieved deliveries of 153,100 units, up 14.0% year-on-year, including +16.5% in the U.S. and Canada, +7.8% in Europe and +19.0% in other regions.
PACCAR management said its Kenworth and Peterbilt trucks benefited from the replacement of older vehicles with new, more fuel-efficient ones through 2023, as well as infrastructure spending in the U.S. The company estimates Class 8 retail sales to be in the 295,000-315,000-unit range in FY23 and 260,000-300,000-unit range in FY24, down year-over-year. PACCAR expects European truck industry registrations in the 16-tonne plus segment to be between 310,000-330,000 units in FY23 and 260,000-300,000 units in FY24. In South America, the company expects the market size in the 16-tonne plus segment to be between 105,000-115,000 units in FY23 and in a similar range in FY24. PACCAR also noted that DAF’s share of the Brazilian 16-tonne plus truck market has increased this year to 10% from 6.9% in the same period last year.
IVECO GROUP
In Q3 2023, the Iveco Group generated consolidated revenue of €3,757 million, up 6.7% year-on-year, including net revenue from industrial activities of €3,671 million, up 5.8% year-on-year, driven by positive pricing dynamics and a better sales mix. In Q3 2023, the company generated adjusted EBITDA of €213 million, up 91.9% year-on-year, with the corresponding margin increasing by 280 basis points year-on-year to 5.7%, and the adjusted EBITDA margin for industrial activities increasing by 310 basis points year-on-year to 4.9%.
The Iveco Group also said it is continuing its efforts to shorten order books to healthier levels in preparation for the 2024 model year order opening, with 26 weeks of production already sold for light commercial vehicles and approximately 20 weeks for medium and heavy trucks. As a result of this effort, Iveco Trucks’ global order book ratio was 0.73 at the end of the third quarter of 2023. During the quarter, truck and bus deliveries decreased 8% globally but remained flat in Europe year-over-year and increased 13% year-over-year for medium and heavy trucks, offsetting lower light commercial vehicle delivery volumes during the period.
The company’s performance in the third quarter of 2023 has improved Iveco’s financial guidance for the full year, including expected growth in net revenues from industrial activities to between 8% and 9% year-on-year (from between +5% and +8% year-on-year previously) and adjusted EBITDA to between €770 million and €800 million (from €750 million to €800 million previously).
