Global Heavy Duty (HD) Truck Market

-----------------------------------------------------2014

Executive Summary

Heavy duty trucks constitute an essential part of trucking industry. The trucking industry provides a vital service to the economy by

transporting large quantities of goods. Heavy duty trucks throughout the world are responsible for the majority of freight movement over

land and are vital tools in the construction, manufacturing, transportation and warehousing industries.

Major truck manufacturing companies are focusing on the emerging markets. With booming economies and low penetration rates,

emerging markets are the key source of growth for global heavy duty truck industry. The largest heavy duty truck market is China,

followed by North America. In terms of registrations, China is growing more rapidly in comparison with North America. Brazil is the

fastest growing market in the world.

The key factors driving growth of global heavy duty truck industry include escalating freight volume, rising global construction

expenditure, increasing urban population and accelerating global income. Some of the noteworthy trends and developments of this

industry are the booming emerging market, increasing shortage of drivers and increasing preference of trucks over railways for

logistics. However, the growth of heavy duty truck industry is hindered by the strict emission standard compliance imposed on

manufacturers and economic and market conditions.

The present report offers a comprehensive analysis of the worldwide heavy duty truck market along with the study of regional markets

including North America, Europe, Brazil, Russia and Asia. The competition in the respective market is intense with few large players

viz. Daimler, Volvo, PACCAR and Isuzu. In addition, the competitive landscape in North America, Europe and Asia along with the

company profiles of the leading players in the market is discussed in detail.

By combining SPSS Inc.’s data integration and analysis capabilities with our relevant findings, we have predicted the future growth of

the industry. We employed various significant variables that have an impact on this industry and created regression models with SPSS

Base to determine the future direction of the industry. Before deploying the regression model, the relationship between several

independent or predictor variables and the dependent variable was analyzed using standard SPSS output, including charts, tables and

tests.

Trucking industry provides a vital service to the economy by transporting large quantities of raw materials, work-in-process and finished goods over land

• As of 2013, the sales of class 8 trucks plummeted to …. units

from …. units, down by ….%. However, the sales are anticipated to

increase in 2014 by ….% from prior year to reach …. units. The

projected sales are expected to grow with a CAGR of ….% in the

period spanning 2013-2017.

• In North America, production of heavy duty trucks declined by

…% to reach …. units in 2013 from …. units in previous year.

However, the production is projected to increase to …. units in

2014, depicting an incline of …% from 2013.

•China, the largest market, accounted for ..% of the total global

registrations. North America is the second largest market with …%

share, followed by Western Europe and South America accounting

for …% and …% share in the registrations, respectively. India was

another important region in terms of registrations, accounting for

…% share in 2013.

Global Heavy Duty Truck Registration by Region (2013)North America Heavy Duty Truck Production (2009-2015E)

The US Class 8 Sales (2009-2017E)

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China North America Western Europe

South America India Russia

Japan Eastern Europe Others

Increasing shortage of drivers and increasing preference of trucks over railways for logistics aresome of the noteworthy trends of this industry.

• Heavy duty truck registrations in Europe were … units in 2013,

depicting …% rise, compared to … units registrations in 2012. The

increase in registrations is chiefly a result of pre-buying ahead of

the Euro VI emission standards which had been into effect from

January 2014. However, the registrations are expected to decline

by …% in 2014, to … units.

• North America heavy duty truck market is largely unchanged

compared to 2012 with Daimler and PACCAR comprising ..% and

..% of the market respectively. Volvo held ..% of the heavy duty

truck market in the cited year. For 2014, Navistar is well positioned

to take market share as it has launched Cummins 15L engine in

the end of 2013. It accounted for ..% share of the market in 2013.

• Heavy duty truck sales in China increased by …%, accounting for

… units in 2013, compared to roughly … units sales in 2012. The

sales experienced a CAGR of …% in the period spanning 2007-

2013.

China’s Heavy Duty Truck Sales (2007-2013) North American Heavy Duty Truck Market by Company (2013)

European Heavy Duty Truck Registration (2006-2014E)

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Daimler PACCAR Volvo Navistar Other

The key factors driving growth of global heavy duty truck industry include escalating freight volume, rising global construction expenditure, increasing urban population and accelerating global income.

• Brazilian market has showed a volatile trend over the past couple

of years. Marking an impressive increase of …%, the heavy duty

truck production was recorded at … units at the end of 2013,

compared to …. units during the previous year. Moreover, through

2009 to 2013 the market grew at a remarkable CAGR of …%.

• As of 2013, heavy duty truck market is the second largest market

in China by volume with ….% share, after light duty truck market.

Light duty truck accounted for …% share in the cited period. Mini

duty and mid duty trucks held …% and …% share of total truck

sales in 2013.

• Marking an impressive increase of …%, the Russia’s heavy duty

truck market recorded …. units at the end of 2012, compared to …

units during the previous year. The growth of the heavy duty truck

industry was recorded at a CAGR of ….% during the period

spanning 2009-2012.

Russian Heavy Duty Truck Sales by Volume (2006-2012)China’s Truck Sales by Type by Volume (2013)

Brazilian Heavy Duty Truck Production (2007-2013)

Heavy Duty Mid Duty Light Duty Mini Duty

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The largest heavy duty truck market is China, followed by North America.Brazil is the fastest growing market in the world.

Trucking is the dominant mode of freight transportation in the world. This industry enjoyed its best year in 2013 since the recession of 2008-

09. As of 2013, the truck industry has witnessed a growth of …%, accounting for … million sales volumes from … million in the prior year.

China, Japan and Brazil were the strongest markets in truck industry in 2013. The truck sales are anticipated to reach … million by 2018,

depicting a CAGR of….% in the period spanning 2013-2018.

The global heavy duty truck registrations are anticipated to reach … million units by 2017 compared to … million units in 2013. For 2014, the

market is expected to grow by …%, compared to 2013, to reach … million registrations. The steadily improving transport and logistics networks

globally are the drivers of the outperformance of heavy duty trucks. Global heavy duty truck registrations are expected to grow at a CAGR of

…% for the period spanning 2013-2017.

In 2013, in terms of value, the Volvo group held the largest share of ….% in the heavy duty truck market, immediately followed by Daimler

and PACCAR with ….% and ….% respective share. In terms of volume, Daimler leads the industry accounting for ….% share in 2013. Volvo

Group and PACCAR accounted for ….% and ….% share, respectively.

Note: Market attractiveness is inverse of penetration. Low penetration means high attractiveness and vice-versa

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Global Truck Sales by Volume (2010-2018E)

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Global Heavy Duty Truck Registrations (2009-2017F)