Daimler Truck and Volkswagen’s Traton reported declines in 2024 sales on Tuesday, citing subdued demand in Europe, particularly in Germany. The sluggish market conditions were compounded by challenges in Asia for Daimler Truck and regulatory hurdles for Traton.
Daimler Truck, the world’s largest truckmaker, saw annual sales drop by 12% to 460,409 units, driven by weak demand across Europe and Asia. This aligns with the company’s previously lowered guidance. Despite the overall decline, the company reported a 17% rise in battery electric vehicle (BEV) sales to 4,035 units, though BEVs still represent less than 1% of its total sales.
Traton, which includes brands such as Scania and MAN, experienced a more modest 1% sales decline to 334,200 units. Lower sales at MAN and delays due to tighter European regulatory requirements for vehicle software systems contributed to the drop. The company reported an 18% decrease in BEV sales, totaling 1,740 units for the year.
Despite the sales declines, shares of Daimler Truck and Traton rose 1.7% and 3.2%, respectively, by 1030 GMT, as the figures were in line with market expectations.
Both companies have faced broader industry challenges. Last year, Daimler Truck adjusted its annual outlook and reduced working hours for some German employees in response to weak European and Asian demand. Traton warned of reduced margins in its Scania and MAN divisions during a pre-close call, citing ongoing market weakness in Europe.
Full annual financial reports for Daimler Truck and Traton are expected in mid-March.