Mercedes 2010 Annual Report Download - page 74

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Global demand for commercial vehicles also increased again
significantly in 2010. But this growth was primarily driven by regions
outside the triad markets of Western Europe, the United States
and Japan. In the segment of medium and heavy-duty trucks, world-
wide unit sales increased by approximately 35% while growth
in the triad of approximately 10% was far less dynamic. The US
market has recovered only hesitantly so far with growth of almost
15% in 2010 following a market collapse of nearly two thirds in
the years 2006 through 2009. In Western Europe, the truck
market bottomed out early in 2010 followed by a distinct upward
tendency. In the full year, however, unit sales were only slightly
higher than in 2009. But the German market, which is particularly
important for Daimler, expanded by more than 20%. In Japan,
demand increased in the segment of medium- and heavy-duty
trucks by more than 25% over the full year. After the expiry of the
state incentive program in September, the market weakened tempo-
rarily, but it had returned to a path of moderate recovery by the
end of the year. In the large emerging markets, demand for commer-
cial vehicles increased substantially. The Brazilian truck market,
which is important for Daimler, expanded strongly to surpass the
prior-year level by 50%. The recovery of the Russian market
accelerated during the year with the result that unit sales of trucks
increased by a significant double-digit rate over the full year.
The Indian market grew by 50% and more than 1.2 million medium-
and heavy-duty trucks were sold in China (2009: 834,000),
equivalent to about half the entire world market in 2010.
With regard to the van markets important to Daimler, demand
in Western Europe recovered moderately and unit sales were
10% higher than in 2009. The US market grew substantially
(+19%), although the rate of recovery declined distinctly during
the course of the year.
Bus markets developed very disparately in 2010: Strong growth
of 27% in Latin America (excluding Mexico) was offset by declining
demand in the NAFTA region (-7%). Demand remained below
prior-year levels in most of the countries of Western Europe; the
region’s total market volume decreased by 9%.
Automotive markets. After some dramatic drops in demand
during the year 2009, global automotive markets expanded again
significantly in 2010.
At the beginning of 2010, many countries’ state incentive programs
were still having an effect, so the global car market achieved double-
digit growth rates in the first half of the year. Rates of expansion
slowed down for a while in the second half, but demand increased
again towards the end of the year and surpassed the prior-year
volume by about 12% in the full year. As a result, worldwide unit
sales surpassed the record level of 2007. But in regional terms,
demand developed very differently. Strong growth in the Asian
emerging economies, especially China and India with rates of
30% and more, was the main factor behind the expansion of the
world market. Although the US market expanded overall by
approximately 11%, its recovery was slightly less dynamic than
had been expected at the beginning of the year. In Western
Europe, state scrappage schemes gradually expired as the year
progressed, so demand as of the second quarter was significantly
lower than in the prior year and decreased by 5% over the full
year. Of the volume markets, only the United Kingdom and Spain
surpassed the prior-year level, while demand was distinctly lower
in Germany (-23%), France (-2%) and Italy (-9%). In Japan, the market
profited until September from state incentives and expanded
by a good 7% over the full year. But after the incentive program
expired, demand for cars slumped by a significant double-digit
rate in the fourth quarter year on year. The development of markets
in Eastern Europe and South America was generally positive.
Thanks to state scrappage incentives, the Russian market recovered
somewhat with growth of more than 30%, following the collapse
of nearly 50% in 2009. Demand in Brazil was robust and unit sales
surpassed the prior-year level by 10%, although the state support
program already expired in March. As a result, Brazil attained
a market volume of more than three million vehicles, making it
bigger than Germany’s and the fourth-largest car market in the world.
Unit sales growth rates 2010/2009 in %
Global automotive markets
45
30
15
0
-15
Total Japan ChinaUSA1, 2
Passenger cars
Commercial vehicle
s
1 Cars segment includes light-trucks
2 Medium- and heavy-duty trucks
Source: German Association of the
Automotive Industry (VDA), various institutions
Western
Europe
South
America
2