North American commercial vehicle market and trends of CV manufacturers

Truck market sees substantial recovery; Paccar and Navistar expand emerging market business

2012/02/14

Summary

 Reported below are the present conditions of the medium- and heavy-duty truck markets in North America (US and Canada) and the trends of initiatives being taken in North America and other areas by Paccar and Navistar, manufacturers of medium- and heavy-duty commercial vehicles.

 The medium- and heavy-duty truck market in North America plummeted to 223,000 units in 2009 due to the economic crisis. It regained slight momentum to 246,000 units in 2010, and recovered substantially to 308,000 units in January to November 2011, up 39.2% from the same period a year earlier. In Navistar's forecast, the market is likely to see a 15 to 20% year-on-year increase in 2012.

 The heavy-duty truck market in North America is setting the scene of severe competition among the four major manufacturers including Daimler (32.3% market share in January-November 2011), Paccar (27.7%), Navistar (21.0%) and Volvo (18.9%). All four manufacturers registered an increase in North American sales in the same period and, in particular, Paccar's share rose significantly by 4 percentage points from the same period a year earlier.

 Both Paccar and Navistar are each following an aggressive business policy in emerging markets. Paccar is building a new plant in Brazil to produce DAF trucks to enhance business in South America. Navistar is launching models of finer design quality and better operability in Latin American markets to increase its share there. The company is also expanding business in areas outside North America in cooperation with Caterpillar.

Related reports:  Daimler's commercial vehicle business (November 2011);
North American CV manufacturers (November 2010)