Volvo 2013 Annual Report Download - page 63

Volvo strong in improved truck market
The South American market for heavy-
duty trucks increased to 151,500 trucks in
2013 compared with 145,500 the year before.
Brazil is the largest market by far in South
America and accounted for 69% of the total
market in the region. In 2013, the total Brazilian
market for heavy-duty trucks rose by 19% to
103,800 trucks compared with 87,400 trucks
in 2012, positively impacted by the slightly
improved trend in the Brazilian economy, a
good crop season and support from a favorable
government fi nancing for purchases of trucks,
known as the Finame program.
Increased market shares in Brazil
Volvo’s success in the Brazilian market contin-
ued in 2013. In the segment for trucks above 16
tons, the market share in Brazil rose to 20.0%
compared with 18.2% in 2012 and 17.1% in 2011.
Volvo has gained market share continuously in
recent years. In 2010 the market share was
15.0% and in 2009 it was 13.3%.
Volvo has also strengthened its position in the
medium heavy-duty segment in recent years,
due to the success of the Volvo VM, and had a
market share of 12.0% in 2013. The new Volvo
VM line for Latin American was introduced in
August 2013 at an event in Trancoso in the
Northeast of Brazil. The offering was further
enhanced with a new cab exterior, several new
models and the I-Shift automated gearbox.
Greater interest in electromobility
The South American bus market improved dur-
ing the year. In Brazil, the market was positively
affected by Finame and procurement for the
World Cup. Interest in Bus Rapid Transit solu-
tions remains high in the region. Volvo Buses
sold 190 buses to San Salvador. The buses will
operate in the city’s BRT system.
The total heavy bus market in Brazil amounted
to 4,200 buses (4,400). With a market share of
19% (25), Volvo Buses is the third largest bus
brand in heavy buses in Brazil. In all of South
America, Volvo Buses deliveries decreased by
5% to 2,434 vehicles (2,560).
There is a clear trend towards electromobility
in South America, with interest in hybrid and
electric vehicles. Volvo Buses secured a break-
through order in the region for 200 hybrid buses
for Bogotá in Colombia. The buses will form part
of the city’s Bus Rapid Transit system, TransMilê-
nio. It was also signifi cant that the order com-
prised a total solution that includes complete vehi-
cle maintenance and the access to hybrid battery
capacity at a fi xed monthly cost.
Volvo CE expands production in Brazil
Following the two good years in 2011 and 2012,
the trend in the construction equipment market
continued to be good in 2013. In total, the market
increased by 4% in 2013 compared with 2012.
However, Volvo CE’s deliveries in South
America declined by 9% to 3,568 machines in
2013, one of the reasons for which was the
weaker demand from the mining industry.
Manufacturing of SDLG excavators began in
August in a new plant at Volvo CE’s facility in
Pederneiras, Brazil. Four crawler excavators be -
tween 13.8 and 24.3 tons will initially be manufac-
tured. SDLG excavators have been sold in Brazil
for more than four years and during this period
the company has established itself as one of the
leading suppliers in the value segment.
During the year Volvo CE also decided to
consolidate its production capacity in the
Americas by relocating the manufacturing of
Volvo- branded backhoe loaders from Tultitlan,
Mexico to Pederneiras, Brazil. The fi rst backhoe
loader manufactured at the facility in Peder-
neiras left the plant at the end of October.
Volvo Group in South America
• Net sales: SEK 29,758 M (29,164)
• Share of net sales: 11% (10)
• Number of employees: 6,275 (5,977)
• Share of Group employees: 6% (6)
• Largest markets: Brazil, Peru, Chile
and Argentina.
Market development, heavy-duty
trucks, South America, Thousands
Market shares, heavy-duty trucks,
Brazil, %
Volvo Construction Equipment
has its South American production
located in Pederneiras in the
state of São Paulo, Brazil.
Market development, construction
equipment, South America,
Thousands
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