Volvo 2008 Annual Report Download - page 56

Trucks
– signifi cant weakening in
all markets
The global market for heavy trucks continued
to grow during most of the year. In the fi rst
half of the year, demand remained strong in
Europe, parts of Asia and South America, but
the market weakened very sharply during
second half in the wake of a global recession
that was deepened by the crisis on fi nancial
markets. The North American market weak-
ened further from the already low level in
2007. The same trend was noted on the Jap-
anese market.
Total market
The total market for heavy trucks in 2008 in
the EU’s 27 countries plus Norway and Switzer-
land amounted to about 318,700 vehicles, a
decline of 3%. All truck manufacturers imple-
mented measures to adapt production to a
newer, much lower demand level. The total
European market for heavy trucks is projected
at 180,000 to 220,000 vehicles in 2009.
In the medium-heavy segment (10–15.9
tons) in Western Europe, the market decreased
by 18% to 29,200 trucks compared to 2007.
The continued weak development in the
North American economy affected the mar-
ket adversely. The total market declined 11%
to 184,900 trucks, compared with 208,000
trucks a year earlier. The North American mar-
ket in 2009 is expected to be characterized by
continued weak demand during the fi rst half of
the year and amount to 165,000-185,000
vehicles for the full year.
Although showing growth for the full year,
demand weakened sharply also in other mar-
kets during the second half of the year. In Bra-
zil, the total market rose 35% to 78,600 heavy
trucks. Among the major markets in Asia,
China rose the most with 11% to a record level
of about 550,000 trucks (>14 tons), compared
with 490,000 a year earlier. The market for
heavy trucks in India amounted to 159,600
vehicles in 2008 (193,000). The total market
for heavy trucks in Japan declined 18% to
34,900 vehicles (43,000). The Japanese mar-
ket for heavy and medium-heavy trucks is
expected to decline by 10–15% in 2009.
Market shares
During 2008, Volvo Trucks’ market share in
Europe for heavy trucks rose to 14.8% (14.6).
Renault Trucks’ market share in Europe
increased to 10.8% for heavy trucks (9.7). In
the medium-heavy truck segment (10–15.9
tons), Renault Trucks market share in Western
Europe was 15.1% (12.5) and Volvo Trucks’
6.7% (5.7).
Key ratios
Trucks 2007 2008
Net sales as percentage
of Volvo Group's sales 66 67
Net sales, SEK bn 187.9 203.2
Operating income, SEK bn 15.2 12.2
Operating margin, % 8.1 6.0
Net sales by market
Trucks, SEK M 2007 2008
Europe 108,651 109,914
North America 27,255 26,588
South America 11,483 14,680
Asia 26,593 37,515
Other markets 13,910 14,538
Total 187,892 203,235
Deliveries by market
Trucks 2007 2008
Western Europe 100,106 95,969
Eastern Europe 27,964 25,878
North America 33,280 30,146
South America 15,264 18,092
Asia 39,916 60,725
Other markets 19,826 20,341
Total 236,356 251,151
Market shares in Europe,
heavy trucks
Market shares in Europe,
medium-duty trucks
Market shares in North America,
heavy trucks
Market shares in Japan,
heavy trucks
08070807
10.8%9.7%14.8%14.6%
Volvo Trucks Renault Trucks
08070807
15.1%12.5%6.7%5.7%
Volvo Trucks Renault Trucks
08070807
7.3%7.3%8.9%9.3%
Mack Trucks Volvo Trucks
0807
22.6%21.6%
Nissan Diesel
Volvo Trucks’ market share in North America in
2008 declined to 8.9% (9.3), while Mack Trucks’
market share was unchanged at 7.3% (7.3).
In Japan, Nissan Diesel’s market share for
heavy trucks rose to 22.6% (21.6). Volvo’s
share of heavy trucks on the Brazilian market
declined to 12.9% (13.6).
In total, the Volvo Group is the world’s second
largest manufacturer of heavy trucks.
Business areas 2008
52