Daimler expects rise in global truck demand

Daimler is expecting a big jump in sales in its truck business this year, in spite of questions over how the Japan crisis will affect global markets.

The world’s top-selling truckmaker forecast a “significant” sales increase this year thanks to the return of demand in Europe and further rapid growth in a series of emerging markets.

In the first two months, Daimler’s sales increased by 28 per cent year-on-year.

Andreas Renschler, head of the group’s truck business, said the global upswing was still “robust” and the best months were still to come.

“The biggest unknown at the moment is the situation in Japan. The consequences of this catastrophe both for the Japanese market and the global economic interdependence cannot be foreseen yet.”

He said Daimler hoped to resume production at its Japanese Mitsubishi Fuso truck factories next Tuesday. “As soon as the security situation will allow it, we will restart production.”

Fuso, which accounted for 40 per cent of the group’s 355,000 truck sales last year, stopped assembling trucks and buses at its local factories and set up temporary headquarters in Osaka following last week’s earthquake and tsunami in the country.

Mr Renschler said the business impact of the production stoppage would only be seen in the premium car and truckmaker’s second quarter.

With Fuso, the crisis has hit Daimler’s weakest link, as its Asian unit had already been lagging behind profitability in Europe and the US.

Mr Renschler said Daimler aimed to increase its operating profit margin in the truck business to 8 per cent by 2013, when it wants to sell half a million trucks.

In the past year, Daimler’s truck operations had a 5.5 per cent margin.

The truck group, which sells everything from small transporters to heavy trucks, is intensifying its push into emerging markets.

In India, Daimler recently launched a new brand, “BharatBenz”, into which it is investing €700m ($992m) to take on rivals in the medium-priced segment.

“In 2020, this segment could make up for 80 per cent of the truck market [in India],” Mr Renschler said.

In China, Daimler hopes to gain regulatory approval this summer for a long-planned joint venture with Foton, a local truckmaker.

The launch of the joint venture, which is set to sell trucks under Foton’s Auman brand, would come as a badly needed breakthrough in the world’s largest truck market.

In the past year, Daimler sold a mere 3,100 vehicles in China. Local competitors such as FAW have already come close to snatching the world leadership from the German producer.