North American commercial vehicle market trends

Paccar enjoys market share expansion; Navistar rethinks use of SCR technology

2013/01/28

Summary

Market share of heavy-duty trucks (Class 8) in North America by OEM The medium- and heavy-duty truck market in North America (U.S. and Canada) dropped 30% y/y to 223K units due to the economical crisis in 2009, but recovered to 246K units in 2010 and made a huge leap to 344K units in 2011 and 355K units during the January to November 2012 period.

 The sales of heavy-duty trucks (Class 8) grew 17.9% y/y to 204K units during the January to November period in 2012. According to Paccar's estimation, the heavy-duty truck market in North America is likely to achieve an annual sales volume of 210K to 220K units in 2012 and 210K to 240K mainly from replacement demand in 2013.

 The heavy-duty truck market for the January-November 2012 period in North America is split among four major manufacturers: Daimler (34.3%), Paccar (28.8%), Volvo (19.3%) and Navistar (17.6%). The sales volume and the market share for the three OEMs excluding Navistar increased, but the figures dropped for Navistar, which has not met the 2010 gas emission standards for heavy-duty diesel vehicles. Navistar's market share declined by 3.4 percentage points during that period.

 Paccar achieved record heavy-duty truck market shares in Europe and the U.S. The company's businesses in emerging markets are also growing; a DAF truck plant is currently under construction in Brazil while DAF trucks have been launched and a parts distribution center was established in Russia. In China and India, parts have been procured.

 Navistar had chosen not to use SCR technology to meet the U.S. 2010 emission standards, but even by mid 2012, the company still hadn't passed the testing, which resulted in the declined sales. In August 2012, the company changed its strategy and made a decision to introduce SCR. To restore its performance, Navistar will use engines and SCR systems supplied from Cummins and launch trucks meeting the standards from the beginning of 2013. Daimler and Volvo will be featured in our upcoming reports.


Related report: North American CV manufacturers (February 2012)

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