Mercedes 2010 Annual Report Download - page 119

Management Report | Outlook | 115
The after-effects of state incentive programs are still dampening
demand in some volume markets, above all in the lower market
segments. In Germany, however, significant growth is now to be
expected following the double-digit market decline in 2010.
On the other hand, the Japanese car market is unlikely to equal
its artificially high level of 2010, which was boosted by state
incentives for car buyers. In addition to the Asian emerging markets,
demand will continue to grow also in Latin America and Eastern
Europe. In Brazil, slightly less market growth than in the prior year
is anticipated, while demand in Russia should also expand at
a lower rate this year.
Worldwide demand for commercial vehicles this year will probably
feature sharply differing market developments in the triad
markets and the other regions. Market recovery is expected to
accelerate in the triad of Western Europe, the United States
and Japan, especially in the segment of medium-duty and heavy-
duty trucks. For the NAFTA region, market growth of 20 to 25%
is anticipated. Demand for trucks in Europe should increase
by 15 to 20%. Following the expiry of state incentive schemes in
autumn 2010, moderate volume growth is expected for the
Japanese market for medium and heavy-duty trucks. Demand for
trucks outside the triad will be primarily determined by the
Chinese market. Since the state incentive program expired in
China at the end of 2010, demand is expected to decline this
year. But the Indian market should continue growing, although
rather moderately. The Brazilian market, which is important for
Daimler, will probably remain roughly at the high level of last year.
The end of state incentives after the first quarter should be
offset by ongoing strong demand from infrastructure projects.
The possibility of purchases being brought forward before stricter
emission limits come into force in 2012 could have an additional
positive impact on the market this year. The Russian market is
expected to continue its recovery, supported by a state scrappage
bonus. From a global perspective, however, a slight reduction
in total market volume is likely, due to anticipated lower demand
in China.
Growth in demand in Daimler’s currently most important van
market, Europe, is expected to be moderate at between 4 and 6%
this year. Demand for vans in the United States is likely to grow
by a double-digit percentage.
With regard to buses, we anticipate ongoing strong demand in
Latin America at a similar level to the year 2010. In Western
Europe, we expect no significant change in the market situation.
Independently of economic developments in our markets, the
regional distribution of demand has shifted significantly in recent
years. The importance of the emerging markets has increased
enormously not only for the industry as a whole, but especially
for manufacturers of premium vehicles, and the trend is likely
to continue in the coming years. This creates great challenges for
the industry regarding production sites and flexibility, as well
as the requirements of differing customers in a global market.
Another factor is the continuing and increasing need to invest
in fuel-efficient and future-oriented technologies and to develop
and supply innovative and sustainable mobility and transport
solutions. The companies that meet these challenges and make
active use of these fundamental changes will have excellent
growth prospects also in the future. But ultimately, the ability
to stand out from the competition with innovations, exciting
products and strong brands will be an increasingly important
factor for success.
Unit sales
In view of the continuation of generally good market prospects
as well as numerous model changes and new products,
Mercedes-Benz Cars anticipates further growth in unit sales
by the Mercedes-Benz brand. Thanks to our up-to-date and
competitive model range, we will profit also in the year 2011
from the strong demand for our E-Class models and from the
market success of the S-Class. Furthermore, the new version of
the CLS coupe has been delivered to customers since late Janu -
ary 2011. As of March, the new generation of the C-Class sedan
and station wagon and the new SLK roadster will provide addi-
tional sales impetus. The C-Class coupe will follow in June, the
new version of the M-Class will be launched in September, and
the roadster version of the Mercedes-Benz SLS AMG will follow
in the fourth quarter. In November, the new B-Class will be
launched – the first model of four new vehicles in the compact-
car segment. On the engine side, we will introduce our highly
efficient four, six and eight-cylinder engines and the eco-start-
stop technology in additional models. This will give us a wide
range of vehicles that will impress our customers – especially
our fleet customers – with high performance and outstanding
drivability combined with low fuel consumption. On this basis,
we are putting particularly economical and environmentally
friendly model versions on the road, thus further reducing the
CO2 emissions of our fleet. With the new generation of the
C-Class, for example, the C220CDI will soon be available with
fuel consumption of just 4.4 liters per 100 kilometers and CO2
emissions of 117 g/km.