truck market 2024 sustainable growth in global markets

Truck Market 2024 Sustainable Growth in Global Markets

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Dear Reader,

Welcome to the Deloitte 2014 Truck Study.

Growth is back on the agenda. While the industry environment remains challenging, the key

question is how premium commercial vehicle OEMs can grow profitably and sustainably in a

global setting.

This year we present a truly international outlook, prepared by the Deloitte Global Commercial

Vehicle Team. After speaking with a selection of European OEM senior executives from

around the world, we prepared this innovative study. It combines industry and Deloitte expert

insight with a wide array of data. Our experts draw on first-hand knowledge of both country

and industry-specific challenges.

We hope you will find this report useful in developing your future business strategy. To the

many executives who took the time to respond to our survey, thank you for your time and

valuable input.

We look forward to continuing this important strategic conversation with you.

Christopher Nürk

Partner Automotive

Welcome to the Deloitte 2014 Truck Study

Editorial

Using this report

In each chapter you will find:

• A summary of the key messages and

insights of the chapter and an overview of

the survey responses regarding each topic

• Detailed materials supporting our findings

and explaining the impacts for the OEMs

© 2014 Deloitte Consulting GmbH

Christopher Nürk Michael A. Maier

Michael A. Maier

Director Strategy & Operations

From now to 2024, annual growth of > 3% is expected in the global truck market, mainly driven by global GDP

growth, estimated at 3.3% per year.

A closer look at growth by country reveals a wide range of growth rates. Brazil, China, and Japan show little mo-

mentum, growing at 1% per year. The U.S. also trails the global average at 2%. India is the most dynamic large

market with a staggering 9% CAGR. New growth markets appear in Eastern Europe (10%), Russia and Central

America (5% each) and in the ASEAN countries (4%).

The study will examine in detail how market contenders can stay on top of ever-intensifying competition in the

mature markets. Expanding into growth markets requires major decisions on the operating model and product

portfolio for each region. Triad premium OEMs especially must adjust their offering to local market require-

ments if they want to move out of their high-end niche.

In our opinion, two strategic options will determine market success in 2024:

1. Focus on the right growth markets and invest in those

2. New business models to open new revenue streams to OEMs

From a global perspective we want to show examples how this strategic options can be successfully fullfilled by

introducing the following topics by our global team:

• Aftermarket and, even more importantly, aftermarket pricing can increase an OEMs profitability in

mature markets with slower new vehicle sales.

• The telematics market will grow to a size of US$20B by 2024. How do OEMs need to be organize to claim

their piece of the pie?

• Staying focused on investing in the right markets is key. We provide insights on how to enter ASEAN

markets.

Yet, slow growth in key markets will increase competition while growth is shifting

to new geographies

The global truck market outlook is optimistic

1.

2.

Executive Summary

Market Outlook

3. Focus Top 10 OEMs

4. Competitive Landscape

5. Global Insights: North America, Increasing Profit in the Aftermarket

6. Global Insights: Western Europe, Growth through telematics

7. Global Insights: Japan, How OEMs will succeed in ASEAN

Table of Contents


But profitable and sustainable growth is contingent on adjusting the go-to-market approach,

product and service portfolio to local requirements

Winning in a global market is the key challenge for every truck OEM

Growth Market Strategy

Mat

ure

Mar

ket St

rate

gy

Mature Market StrategyNew business models to open new revenue streams to OEMs

Q: Within the following regions, for which segment do you expect the strongest increase in sales volume?

Growth Market StrategyStrengthening local presence in the “right markets”

• Brands• Products• Development & production • Sales & services

0

10%

20

30%

40

50%

60

70%

80

90%

100

Premium

Mid Market

Low Cost

ROW

Japan

Russia

Brasil

India

China

ASEAN

South/Central America

USA

Eastern Europe

EU 38%

25%

18%

78%

11%

10% 10% 10%

67%

70%

66%

10%

50%

38%

66% 12% 22%

24% 38%

40% 10%

20% 40% 30%

34%

22%

11% 11%

36% 46%

25% 50%

62%

0% 20% 40% 60% 80% 100%

Aftersales

Premium

Mid Market

Low Cost

ROW

Japan

Russia

Brasil

India

China

ASEAN

South/CentralAmerica

USA

Eastern Europe

EU 38%

25%

18%

78%

11%

10% 10% 10%

67%

70%

66%

10%

50%

38%

66% 12% 22%

24% 38%

40% 10%

20% 40% 30%

34%

22%

11% 11%

36% 46%

25% 50%

62%

Low Cost Mid Market Premium Aftersales

1


Insights from OEMs

Global Insights North America: Increasing Profit in the Aftermarket

Global Insights Western Europe: Growth through Telematics

Global Insights Japan: How OEMs Will Succeed in ASEAN

Source: Deloitte Global Truck Study 2014, Reference page

The truck market is growing, but the pace is fairly slow

From 2004 to 2014, sales in the global truck market for MCV & HCV* grew at an average

annual rate of 2.7%, but growth was extremely volatile, ranging from -18% to 37%. HCVs

continue to be the dominant segment in the market, with a share of 63%. Between 2014

and 2024 the global truck market is expected to continue growing at a fairly low rate of

3.1% per year. The Indian market will be the main driver.

Growth is not global – it is regional

Growth rates vary widely around the globe. Growth is slowing down in large truck markets

such as China and most of the Triad countries. On the contrary, India, the ASEAN countries,

and Eastern Europe will account for most of the future growth. Central America is showing

dynamic growth as well. More than 70% of incremental sales in 2024 will be generated out-

side the Triad markets. But the solidity of the Triad markets will stabilize the total global truck

market in the decade to come.

Beyond BRIC

Much of the recovery of the truck industry after the financial crisis was due to the BRIC

markets and their growth opportunities. This is not the only truth anymore. While the BRIC

markets remain the largest truck markets, other regions have developed more growth mo-

mentum. It is essential for OEMs to focus on both, the largest markets and the new growth

regions.

Country growth rates vary widely – from a meager 1% for China and Brazil to

a staggering 9% for India and 7% for Eastern Europe

The global truck market is expected to grow at a CAGR of 3.1% to 2024

EU+4%

US+2%

China+1%

Brazil+1%

Japan+1%

67%

India +9%

Eastern Europe+7%

Russia+5%

Central America+4%

Asean+4%

44%

33%

0%

56%

11%

33%

0%

44%

0%

Q: In your opinion, how will your company‘s turnover develop in the following regions in the future? (% of respondents)

*Medium Commercial Vehicle, Heavy Commercial Vehicle, Reference page

Market growth (units, CAGR 2024e in %), source IHS Global

Expected market growth by OEMs.

2


Source: Deloitte Global Truck Study 2014

Insights from OEMs

• The annual growth rate for the global truck market is projected to be

3.1% for MCV and HCV sales from 2014 to 2024

• Average annual growth from 2004 to 2014 was 2.7%

• Anticipated growth rates for MCVs and HCVs are very similar, with HCVs

remaining the dominant segment in the market with a 63% share

• 1 million additional vehicles are expected to be sold to 2024

After a volatile period from 2004 to 2013, growth in the global MCV and HCV markets is expected to stabilize between 2014 and 2024

Market Outlook Outlook by Region Outlook by Country Country Deep Dives

Development of global MCV and HCV sales until 2024

0

1000

2000

3000

4000

k units


k units

MCV

HCV

2024e2014e

36%

37%

63%

64%

0

1000

2000

3000

4000

2024e2023e

2022e2021e

2020e2019e

2018e2017e

2016e2015e

2014e2013

20122011

20102009

20082007

20062005

2004

CAGR 3.1%


0

1000

2000

3000

4000

k units


k units

MCV

HCV

2024e2014e

36%

37%

63%

64%

0

1000

2000

3000

4000

2024e2023e

2022e2021e

2020e2019e

2018e2017e

2016e2015e

2014e2013

20122011

20102009

20082007

20062005

2004

CAGR 3.1%

HCV MCV

Development of Global MCV and HCV Sales to 2024e

From 2.7 M

trucks in 2014 to 3.7 Min 2024

Source: Oxford Economics, IHS Global & Deloitte Analysis


Market Outlook

Growth is not global but regional, with India contributing the largest share – 377.000 additional units sold in 2024

Outlook by Region Outlook by Country Country Deep Dives

2014e

377.400

469.0002024e

2014e

297.000

461.0002024e

2014e

48.100

97.7002024e

2014e

237.300

544.4002024e 2014e

168.100

242.9002024e

2014e

116.00

195.0002024e

2014e

985.00

1.090.0002024e

2014e

77.100

84.5002024e

2014e

65.500

103.6002024e

2014e

43.000

51.1002024e

2014e

164.700

181.7002024e

+1%

Japan

+1%

China

+2%

U.S.

+2%

ASEAN

+4%

EU

+4%

Russia

+5%

+9%

+5%

South America

Central America

India

Eastern Europa

+10%

+1%Brazil

Development of Truck Sales to 2024e by Region

Source: IHS Global & Deloitte Analysis, Not allocated countries “Rest of World” not included, Reference page


Market Outlook

The Triad and BRIC markets will remain the biggest truck markets in 2024, despite suffering from slower than average growth in most cases


Expected Volume of Truck Sales in 2024e by Country

2024e Sales by Country 2024e Growth by Country Additional Sales in 2024e

0

100.000

200.000

300.000

400.000

500.000

600.000

700.000

800.000

900.000

1.000.000

1.100.000

Chi

na

Indi

a

USA

Russ

ia

Braz

il

Indo

nesi

a

Ger

man

y

Japa

n

Fran

ce

Mex

ico

Can

ada

UK

Turk

ey

Spai

n

Sout

h Ko

rea

Vie

tnam

Italy

Sout

h A

fric

a

Thai

land

Arg

entin

a

Peru

Saud

i A

rabi

a

Col

ombi

a

Pola

nd

Aus

tral

ia

Chi

le

Ukr

aine

2014 Rank

Market Size:• The BRIC markets will remain the world’s largest

truck markets

• India will supersede the U.S. as the world’s second

largest market

• Struggling European countries such as Spain and

Italy are expected to have recovered by 2024

Source: IHS Global & Deloitte Analysis, Not allocated countries “ROW” not included, Reference page

New markets

Triad markets


Market Outlook

While many small markets will achieve high growth rates, most of the above-average growth will come from India, Russia, and Germany


Expected Market Growth in 2024e by Country


Source: IHS Global & Deloitte Analysis

• The European Truck OEMs expect a growing mid-

market segment in China which compensates for a

slow market growth overall in China

• The economic recovery will allow some EU econo-

mies to move from sluggish growth to above-aver-

age growth rates

• Central and South America show momentum, but

cannot compensate for Brazil’s slow growth pace

• Eastern Europe will be dynamic although the

Ukraine crisis may cast a pall0

0 50.000 100.000 150.000 200.000 250.000 500.000 1.000.000

Average CAGR 2014 - 2024

Units sold

2

4

6

8

10

12

14

16

18

Croatia

Slovenia

Costa Rica

GreeceIreland

Spain

TurkeyLatviaMalaysia

Estonia

Uruguy

Mexico

Pakistan

India

China

Russia

Brazil

Germany

UzbekistanBulgaria

Czech Republick

Italy1

1Portugal2Romania3Kasakhstan

2 3

Growth in %

BRIC EU ROW East Europe Asean South / Central America

Market Growth:


Market Outlook

70% of incremental truck sales in 2024e will be outside the Triad markets

Expected Volume of Incremental Unit Sales in 2024e by RegionOutlook by country - Additional sales in 2024

ROW

S/C America&Brazil

Asean&Japan

United States

China

East Europe

EU

India

39.126

307.138

164.014

55.133

128.585

105.080

91.610

82.199

Additional Unit Sales973.000



India

EU

East Europe& Russia

China

United States

ASEAN / Japan

Brazil / S/C America

ROW

Growth potential

differs in both traditional and

developing markets

Mature Markets

Emerging Markets

Germany

+4%

+5% +4%

+2%

+5% +1%

Russia Indonesia

U.S.

Turkey Brazil



Daimler & Volkswagen are the dominant players in their home market and compete with a fragmented set of European and non-European players

Registered Commercial Vehicles* in Germany in 2013

Daimler

Volkswagen

Paccar

Fiat

Volvo

Local Brand Footprint

• The German truck market provides an example of a mature market dom-

inated by two major OEMs, Daimler with its brand Mercedes Benz Trucks

and Volkswagen owned MAN, that compete with a number of smaller

players and a highly fragmented set of others

• Daimler and Volkswagen benefit from a strong foothold in their home

market and a balanced portfolio of registered models

• Other European players such as Fiat and Volvo account for a considerable

number of registrations on the strength of their proximity to Germany

and EU free trade

Chart 2 (Stacked)

0

100

200

300

Production

Unit Sales

2024e2022e2020e2018e2016e2014e0

1

2

3

4

5

GDP Growth

2024e2022e2020e2018e2016e2014e

k %CAGR +4.0%

80

125

86

151

99

167

96

189

106

190

115

211

Market Outlook Outlook by Region Outlook by Country Country Deep Dives

Germany U.S. Russia Turkey Indonesia Brazil

Unit Sales Production GDP Growth*Including LCV and Buses

Source: IHS Group, Oxford Economics, Deloitte Analysis

Germany Manufacturer groupAchleitner

Aebi

Amur-ZAO Gr.

Aston Martin Finance Gr.

Barkas

Blue Bird

Blue River Group

Borgward

Boschung

Bucher

Caterpillar

China Automobile

China Hi-Tech Group Co.

CNH Global

Daimler AG

Eicher Motors

Fiat Group Automobiles SpA

Fiat Industrial Group

Ford Group

Geely Automobile Hld.

General Motors Group

HaKo Gr.

Hinduja Group

Honda

Hyundai Kia Automotive Group

IFA

Isdera

Isuzu

J ohn Deere

Kamaz

Komatsu

Krupp

Ladog

Liebherr

Lindner

Manitowoc

Mazda Motors Gr.

Mecalac

Mitsubishi Motor Group

Mowag

Muszertechnika Holding Zrt. Gr

Navistar International Corp.

Neuson Kramer

Otokar Gr.

Paccar Group

Pfau

Piaggio

PSA Group

Pucher Gr.

Reform

Renault Nissan Alliance

Robur

Russian Machines Gr.

Manufacturer und Model. Farbe zeigt Details zu Manufacturer group an. Größezeigt Summe von 2013-2 an. Die Markierungen werden nach Manufacturer und Model beschriftet. Die Daten werden unter Country gefiltert, wobei Germany beibe-halten wird. Die Ansicht wird unter Exclusions (Manufacturer,Manufacturergroup,Model) gefiltert, wobei 726 E lemente beibehalten wird.

MercedesM.B. Atego

MercedesMercedesSprinter/T1

MercedesM.B. LN2 Unspec.

IvecoIvecoEurocargo-Series

IvecoIveco Daily

Mercedes

MercedesM.B. Actros

MANMAN Unspec.

MANMAN TGS/TGX

MANMANTGL-Series

ScaniaScaniaR/P/T/G-SeriesUnspec.

MANMAN BusUnspec.

MANMAN

VW

VW

MAN

MANMAN L2000Series < 16t.

MANMAN TGA-Series

IvecoIveco

DAFDAFXF105-Series

DAFDAF85

DAF

DAFDAF45

MulticarMulticarUnspec.

IFAVolvo TrucksVolvo Trucks

Volvo Trucks

IvecoIvecoUnspec.

Expected German Sales and Production Units of HCV und MCV


A special design in the U.S. market for commercial vehicles strengthened domestic OEMs and caused foreign OEMs to penetrate via M&A

Registered Commercial Vehicles* in the Unites States 2013 Local Brand Footprint

• The current American truck market is characterized by a strong dominance

of domestic companies with a long history of vehicle production

• This dominance can be explained by the market needs for long-haul trans-

portation that strengthened domestic truck manufacturers

• Navistar accounts for the majority of registered vehicles in its home market,

leveraging its corporate history dating back to the early 1900s and joint

ventures

• While Daimler is a dominant foreign player in the United States, most of its

registered vehicles consist of former American Freightliner models

0

200

400

600

Production

Unit Sales

2024e2022e2020e2018e2016e2014e0

1

2

3

4

5

GDP Growth

2024e2022e2020e2018e2016e2014e

k CAGR +2.2%

377278

406343

422

322

444

358

451

377

469408

%

Country Deep Dives

Germany U.S.



USA

Manufacturer groupBlue Bird

Caterpillar

Crane Carrier

Daimler AG

DSU Trucks

Emergency One



Ford Group

Geely Automobile Hld.


Gillig Corporation

Grand Vehicle Works Holdings

Hendrickson


Isuzu

J ohn Deere

Kalmar

Kovatch Mobile Equipment

Marmon Herrington

Maxim Truck & Trailer


Motor Coach Industries


Nissan Motor Corp.

Oshkosh Corporation

Paccar Group

Pierce Manufacturing

Spartan Motors

Terex

Toyota Group

Van Hool Group

Volkswagen Group

Volvo Truck Gr.

White Motor Company

Manufacturer, Model und Manufacturer group. Farbe zeigt Details zu Manufacturergroup an. Größe zeigt Summe von Yp: 2013/09 an. Die Markierungen werdennach Manufacturer, Model und Manufacturer group beschriftet. Die Daten werdenunter Country gefiltert, wobei USA beibehalten wird.

NavistarInternationalCorp.

Daimler AGFREIGHTLINER

Daimler AGFREIGHTLINERCONVENTIONAL

Daimler AGFREIGHTLINER CHASSIS

NavistarInternationalCorp.INTERNATIONAL

NavistarInternationalCorp.

GeneralMotorsGroup

Paccar GroupPETERBILT

Paccar GroupKENWORTH

IsuzuISUZUNPR

Fiat

Blue BirdBLUE BIRD

General MotorsGroupGMC

Volvo TruckGr.MACK 600

GeelyAutomobileHld.VOLVO

Daimler AGSTERLING

Ford GroupFORD

Ford GroupFORD F550

Ford GroupFORD ECONOLINE

Ford GroupFORD F

Ford GroupFORD

Ford Group

Ford GroupFORD F450

NavistarInternational

Expected U.S. Sales and Production Units of HCV und MCV


Russia Turkey Indonesia Brazil

Market Outlook Outlook by Region Outlook by Country

Navistar

Ford

Daimler

Volvo

General Motors

Paccar

Local players dominate the Russian market where customs duties and tax-es have shut out large-scale foreign competition

Registered Commercial Vehicles* in Russia in 2013 Local Brand Footprint

• The Russian truck market is dominated by domestic players, with a limited pres-

ence of foreign truck manufacturers and few registrations of their products

• Whereas the dominant manufacturer, GAZ, boasts a wide range of models,

Kamaz’ portfolio is relatively limited

• Daimler owns a 10 percent stake in Kamaz

• European and Japanese OEMs such as Daimler, Volkswagen and Isuzu aim to

harness strong market growth by leveraging a diverse model portfolio.

VW has a small advantage in market presence due to their joint venture with

local MAZ

0

100

200

300

Production

Unit Sales

2024e2022e2020e2018e2016e2014e

k CAGR +5.3%

116

79

122 111

154131

167192 195

240

0

10

20

(20)

(10)

GDP Growth

2024e2022e2020e2018e2016e2014e

180 174

%

Country Deep Dives

U.S. Russia



Russia

Manufacturer groupAebi

Alvis Group

Amur-ZAO Gr.

Anhui Xinma Automobile Group L

AvtoVAZ

Ayats

BAZ

Beijing Auto / BAIC Motor Gr.

Belarussian Autoworks

Blue River Group

Bogdan Corporation

Cacciamali

Caterpillar

ChangAn Automobile

China Brilliance

China First Auto Works FAW

China Hi-Tech Group Co.

CNHTC/Sinotruk Gr.

Crane Carrier

Daimler AG

Dongfeng Motor Co. Ltd.



Ford Group


Guangzhou Automobile Group Co.

Gueleryuez

HaKo Gr.

Hinduja Group


IFA

Ikarbus Gr.

Irizar Gr.

Isuzu

J AC Anhui J ianghuai Automobile

J ohn Deere

Kamaz

Kiraca Holding

KOC Holding

Komatsu

Liebherr

Lifan Gr.

Mahindra Group

Manitowoc

Marcopolo S .A.

MARZ

Mega-Motors (UA)


Mudan

Muszertechnika Holding Zrt. Gr

Manufacturer und Model. Farbe zeigt Details zu Manufacturer group an. Größezeigt Summe von 2013-2 an. Die Markierungen werden nach Manufacturer und Model beschriftet. Die Daten werden unter Country gefiltert, wobei Russia beibe-halten wird. Die Ansicht wird unter Exclusions (Manufacturer,Manufacturergroup,Model) gefiltert, wobei 726 E lemente beibehalten wird.

GAZGAZ 53

GAZGAZ 3221 Gazelle

UralAZUralAZ Unspec.

PAZPAZ Bus Gr.

KAVZKAVZBus

LIAZLIAZ Bus

UralAZUralAZ Truck Gr.

ZilZil Truck

MAZMAZ Heavy Truck

MAZMAZunspec

MANMAN

MAN

ZilZil Unspec.

GAZGAZ 66

GAZGAZ3308

GAZGAZ Unspec.

GAZGAZ 3307

KamazKamaz Truck

KamazKamaz Truck

Volvo

Tatra

IsuzuIsuzu ElfUnspec.

HinoHino

DAFDAF

KrAZAvtokraz

NissanNissan Cabsta

Expected Russian Sales and Production Units of HCV und MCV



Germany Turkey Indonesia Brazil

GAZ

Kamaz

Volvo

Volkswagen

Turkey’s emerging truck market is characterized by a mix of global major Asian and European OEMs with a focus on light / medium-duty trucks

Registered Commercial Vehicles* in Turkey in 2013 Local Brand Footprint

• The Turkish truck market is diverse, illustrated by the wide variety of

registered truck brands and the international mix of manufacturers

• Turkey’s proximity to European markets has helped Daimler and other

European OEM build a strong presence with a focus on light- and

medium-duty trucks

• Daimler’s strong position in the market is based on a local production and

a good product portfolio in Turkey

• On the border with Asia, the Turkish market boasts a considerable presence

of Russian (Cukurova) and Japanese (Isuzu) truck makers

0

20

40

60

Production

Unit Sales

2024e2022e2020e2018e2016e2014e

k CAGR +5.0%

30 3036

43 39 43 3947

38

49

40

0

5

10

(10)

(5)

GDP Growth

2024e2022e2020e2018e2016e2014e

37

%

Country Deep Dives

Russia Turkey



Turkey

Manufacturer groupCiftciler (Askam) Gr.

Cukurova Holding

Daimler AG



Ford Group



Isuzu

Kiraca Holding

Mazda Motors Gr.


Otokar Gr.

PSA Group


Sabanci

Skoda Plzno Ltd.

Toyota Group

VDL Group

Volkswagen Group

Volvo Truck Gr.

Manufacturer und Model. Farbe zeigt Details zu Manufacturer group an. Größezeigt Summe von 2013-2 an. Die Markierungen werden nach Manufacturer und Model beschriftet. Die Daten werden unter Country gefiltert, wobei Turkey beibe-halten wird. Die Ansicht wird unter Exclusions (Manufacturer,Manufacturergroup,Model) gefiltert, wobei 726 E lemente beibehalten wird.

MercedesM.B. Unspec. (CV)

MercedesMercedes Sprinter/T1

FordFord Transit

RenaultTrucksRenault Tr.Premium

VolvoTrucksVolvo Trucks

IvecoIveco Unspec.

MANMAN Unspec.

VWVW Crafter

ScaniaScania Unspec.

IvecoIveco BusIsuzu

Isuzu Unspec.

IsuzuIsuzu Elf Unspec.

PeugeotPeugeotUnspec.

FiatFiat Unspec.

OtokarOtokarSultan

KarsanKarsanJ10

Karsan

Hino

BMCBMC Unspec.

MitsubishiFusoMitsubishiFusoCanterUnspec.

FordFord Unspec.

FordFord Cargo

Expected Turkish Sales and Production Units of HCV und MCV



U.S.Germany Indonesia Brazil

Ford

Daimler

Volkswagen

ÇukurovaFiat

Volvo

Isuzu

Japanese truck OEMs including Daimler’s Fuso Brand own the Indonesian market due to substantial investment and compliance with local specs

Registered Commercial Vehicles* in Indonesia in 2013 Local Brand Footprint

• The Indonesian truck market is still very much in a developing stage and char-

acterized by a strong dominance of Japanese truck manufacturers

• Daimler’s predominant position in the market is mostly due to its acquisition

of the Mitsubishi Fuso brand and the suitability of their Canter model for

Indonesian terrain

• Regional proximity and substantial foreign direct investment have bolstered

Toyota’s position, especially benefitting its Hino brand. ISUZU is also expand-

ing market share gradually due to their strength in the Medium CV area.

• Due to its size and proximity to China some Chinese manufactures are trying

to enter the market – but so far with only little quantities

0

50

100

150

Production

Unit Sales

2024e2022e2020e2018e2016e0

5

10

15

20

GDP Growth

2024e2022e2020e2018e2016e2014e

k CAGR +3.0%

88 86100 101 103 106 112 118 118 117 112 126

2014e

%

Country Deep Dives

Turkey Indonesia



Indonesia

Manufacturer groupBeijing Auto / BAIC Motor Gr.

Daimler AG


Ford Group

Hicom


Isuzu


Shanghai Shenlong Bus Co. Ltd

Toyota Group

Unspec.

Volkswagen Group

Volvo Truck Gr.

Manufacturer und Model. Farbe zeigt Details zu Manufacturer group an. Größezeigt Summe von 2013-2 an. Die Markierungen werden nach Manufacturer und Model beschriftet. Die Daten werden unter Country gefiltert, wobei Indonesia bei-behalten wird. Die Ansicht wird unter Exclusions (Manufacturer,Manufacturergroup,Model) gefiltert, wobei 726 E lemente beibehalten wird.

Mitsubishi FusoMitsubishi Fuso Canter Unspec

Mitsubishi FusoMitsubishi Fuso Truck

IsuzuIsuzu Elf Unspec.

IsuzuIsuzuForwardUnspec.

UDTrucksUD

NissanIsuzu

Mitsubishi Fuso

ToyotaToyota Dyna/Toyoace Unspec.

HinoHino Dutro

HinoHino Unspec.

HinoHino Bus

HinoHinoRanger/500

Expected Indonesian Sales and Production Units of HCV und MCV



RussiaU.S.Germany Brazil

Isuzu

UD Trucks

Daimler

Toyota

Volkswagen and Daimler account for the largest share of vehicle registrations due to their long market presence

Registered Commercial Vehicles* in Brazil in 2013 Local Brand Footprint

• The Brazilian truck market is dominated by foreign, global OEMs with the

majority of trucks registered to Volkswagen and Daimler

• Scania and Volkswagen Nutzfahrzeuge are the main models sold in the

Brazilian market

• Having established a market presence as early as 1953 through the as-

sembly of VW Type 1, Volkswagen accounts for the largest share of new

registrations

• Daimler’s Vario and Atego models are the shining stars of a relatively bal-

anced portfolio of new registrations that bolster its strong position

0

100

200

300

Production

Unit Sales

2024e2022e2020e2018e2016e0

1

2

3

4

5

GDP Growth

2024e2022e2020e2018e2016e2014e

k CAGR +1.0%

165196

179

220

165

216180

216

177

228

182

237

2014e

%

Country Deep Dives

Indonesia Brazil



Brazil

Manufacturer groupAgrale

C hangAn Automobile

C NHT C /S inotruk Gr.

Daimler AG

F iat Group Automobiles S pA

F iat Indus trial Group

F ord Group


Hyundai K ia Automotive Group

Navis tar International C orp.

R enault Nis s an Alliance

Volkswagen Group

Volvo T ruck Gr.

Manufacturer und Model. F arbe zeigt Details zu Manufacturer group an. Größezeigt S umme von 2013-2 an. Die Markierungen werden nach Manufacturer und Model bes chriftet. Die Daten werden unter C ountry gefiltert, wobei B razil beibehal-ten wird. Die Ans icht wird unter E xclus ions (Manufacturer,Manufacturer group,Mo-del) gefiltert, wobei 726 E lemente beibehalten wird.

VW TruckVW Truck unspec.

VW TruckVW Truck Delivery

ScaniaScaniaSeries-4

FordFord Cargo

FordFord F-250/350

FordFord F-SeriesUnspec.

Volvo TrucksVolvo TrucksFH-Serie

IvecoIveco

IvecoIveco

Iveco FordIveco FordCargo

IvecoIveco

Volvo TrucksVolvo Trucks

AgraleAgraleUnspec.

GMC

FordFordF-SeriesSA Truck

ScaniaScania G-Series

Scania

ScaniaScania

ScaniaScania

VW TruckVW TruckWorker/Eletronico

VW TruckVW Truck

MercedesM.B. Vario/T2709-914-Series

MercedesM.B. MKGroup over16t

MercedesM.B. Axor

MercedesM.B. Accelo

MercedesM.B. SKGroup

MercedesM.B.

Expected Brazilian Sales and Production Units of HCV und MCV



TurkeyRussiaU.S.Germany

Fiat

Ford

Volvo

Daimler

Volkswagen

According to a recent market forecast, Daimler will manage to defend its No 1 spot

• Controlling almost a quarter of the global market, Daimler remains the Number 1 global

player and has penetrated all of the key markets with its own brands

• Tata is likely to profit from the growth of the Indian market, becoming the second largest

player globally in 2024. But its dependence on one market may turn out to be a major

disadvantage

• A similar challenge will cause Dongfeng to lose its Number 2 market position and to trail

Tata, VW and Volvo in a Chinese market showing little momentum

• Volvo will maintain its global reach through strategic investment in key markets such as

China (Dongfeng) and India (Eicher) along with a focus on selling premium trucks under

the Volvo brand

• VW will try to reap further benefits from closer cooperation and integration of MAN/Scania

into VW Group, potentially reinventing the game

Manufacturers outside Europe only play a dominant role in their local markets

• Even though Chinese OEMs are said to be aspiring to the status of serious competitors

only 3% of their total sales will be exported. These 3% are low in percentage, but based

on > 1.000.000 trucks manufactured by Chinese OEMs this still needs to be considered as

competition for regions like Asean or Africa

• Exports will remain low due to hard-to-surmount differences in specs and emission stand-

ards between the Triad markets and low-cost countries

• Chinese manufacturers are still partly state-owned and follow 3-5 year plans

• Similar trends will occur in India and North America, with North American OEMs focusing

on the South American market and staying out of Europe

The European OEMs are the only truly global players in the truck market, having

acquired share and operations in several key markets

* Analysis based on > 50% ownership. Daimler and Foton are treated as separate entities, Volvo and Dongfeng

are treated as separate entities

In the current truck landscape Daimler will likely defend its position as No 1 truck manufacturer*

Increasing presence of Chinese OEMs in the low-cost and mid-market segments outside China

Chinese OEMs will become serious competitors

The European and North American markets will still be dominated by local OEMs

Increasing global competition among Big-3 European OEMs (VW, Daimler, Volvo)

New players in ASEAN and Eastern countries

International consolidation

Q: In your opinion, how will the competi-tive landscape develop within the next ten years?


Insights from OEMs

3

While Daimler will defend its position as No 1 truck manufacturer Tata seizes the growth in India to overtake Volvo, Dongfeng and Volkswagen

Global Market Share Export Capabilities Sales Split by OEM

OEM Regional Unit Market Shares in 2024e

4% 4% 5% 5% 5% 7% 7% 7% 14% 8%

Europe Greater China Indian Subcontinent Japan/Korea Middle East/Africa

Oceania North America

South America

Central Europe ASEAN

Reg

ional

Mar

ket

Split

Global Market Share (Units)

(1) (2) (5) 2014 Rank (7) (3) (10) (9) (8) (4) (6)

Daimler Tata Volvo Volkswagen DFM Paccar FAW CNHTC BAIC Group International

ASEAN

Eastern Europe

Europe

Greater China

Indian Subcontinent

Japan/Korea

Middle/East Africa

North America

Oceania

South America



While OEMs headquartered in Europe show an international footprint Asian and U.S. OEMs tend to focus on their home markets

Global Market Share Export Capabilities Sales Split by OEM

OEM Global Sales Reach (Units 2024e)



Daimler 2024 Snapshot: With a balanced mix of sales in Triad & growth markets, Daimler will benefit significantly from its global market presence

Global Market Share Sales Split by OEM

Daimler Unit Sales Volume in 2024e Daimler sales volume in 2024e

China

Russia + East Europa

South America

Central America

Japan

India

ROW

Brazil

Asean

EU

USA

2%

30%

19%

3%2%

14%

8%

8%

6%

6%

1%

525k units

Snapshot of Daimler’s Position

China: When Daimler established its first

truck joint venture in the Chinese mar-

ket, competitors such as MAN and Iveco

had already established a solid competi-

tive position. Daimler has not positioned

its own Asian brands in China so as to

achieve maximum unit sales

India: Daimler has introduced Bah-

rat-Benz as a new brand designed to

meet local requirements, opting for a

greenfield investment and brand build-

ing from scratch. This may prove to be

an advantage over other Triad OEMs

Russia: Its partnership with Kamaz

brightens Daimler’s outlook, especially if

Daimler acquires more shares of Kamaz

in the long term

USA

EU

Asean

Brazil

ROW

Russia + Eastern Europe

India

Japan

Central America

South America

ChinaSource: IHS Global & Deloitte Analysis


Export Capabilities

Daimler VW Volvo Tata

VW 2024 Snapshot: Triad markets will continue to dominate VW sales, with most emerging market sales accounted for by Brazil & Russia

VW Unit Sales Volume in 2024e VW sales volume in 2024e

China

Central America

Asean

India

South America

ROW

Russia + East Europe

Brazil

EU

2%

47%

3%3%

27%

12%

5%

1%

269k units

Europe: Volkswagen’s largest markets are

the Triad markets, with a strong focus on

Europe – almost 50% of VW’s units will

be sold in Europe

Brazil: By 2024 Volkswagen will sell more

than one third of its production volume

in Brazil, mainly Volkswagen and MAN

trucks

North America: Volkswagen is currently

without a North American presence, miss-

ing out on leveraging the world’s third

largest market in 2024

India: After acquiring all MAN Force JV

shares, MAN aims to gain more traction in

the Indian market

EU

Brazil


ROW

South America

India

Asean

Central America

China

Sales Split by OEM



Snapshot of VW’s Position


Global Market Share Export Capabilities

Volvo 2024 Snapshot: Volvo is a strong player in Europe and has been working on enlarging its footprint in the emerging markets

Volvo Unit Sales Volume in 2024e Volvo sales volume in 2024e

India

South America

Central America

China

Japan

Asean

Russia + East Europe

Brazil

ROW

USA

EU

5%

37%

8%

7%

16%

10%

9%

3%2% 2% 1%

266k units

Triad: The Triad will account for more

than half of Volvo’s sales, with Europe

(37%) topping the U.S. (16%) in terms of

share

Russia: Volvo is the only Triad truck OEM

that has established its own local plant in

Russia, assigning major strategic impor-

tance to the Russian market. All other

OEMs entered the market through joint

production with JV partners

China: This year, Volvo announced a JV

with Dongfeng, China’s largest truck man-

ufacturer. Currently, actual sales volumes

are low but it is to be expected that the JV

will leverage Dongfeng’s extensive dealer-

ship network

EU

USA

ROW

Brazil


Asean

Japan

China

Central America

South America

India

Sales Split by OEM


Snapshot of Volvo’s Position




Tata 2024 Snapshot: Without a Triad presence, Tata will generate growth from its exceptionally large home market share and its ASEAN activities

Tata Unit Sales Volume in 2024e Tata sales volume in 2024e

Other

Asean

India

94%

4%2%

290k

India: No other OEM is as focused on its

home market as Tata, with India contrib-

uting 92% of its current unit sales. 2024

home market share is even expected to rise

to 94%

Triad: Tata is not present in the Triad

countries. Limiting its ability to participate

in technological advanced market

South Korea: Tata maintains a minimal

presence in the emerging markets, with

South Korea as the major exception. In

Korea, Tata sells the trucks of its local Dae-

woo subsidiary

India

Asean

Other

Sales Split by OEM


Snapshot of Tata’s Position




Insights from OEMs

The global truck manufacturers landscape remains heterogeneous, despite the increase in acquisitions over the last years

0

10%

20

30%

40

50%

60

70%

80

90%

100

ROW

U.S.

Japan

Russia

Brazil

Europe

India

Asean

China

10%

10%

10%

20%

20%

20%

40%

40%

90%

Q: In your opinion, which of the following regions will face the strongest pressure for OEM consolidation in the future? (% of respondents)

Consolidation will strongly depend on the regional lay of the land

• European Endgame: After the most recent transaction in May 2014, when VW acquired

Scania, only Iveco is left as a potential target. Daimler and Volvo Renault are positioned well.

• U.S: Among European OEMs, Volkswagen has no presence or brand in the North Ameri-

can market yet.

• Vying for the Best Approach in BRIC: In recent years all of the OEMs established pres-

ences in the BRIC countries. In the years to come, it remains to be seen which approach

will have an edge, with more transactions to be expected after current partnering has

steadied.

However, market competition, technology changes and a more connected global

economy will likely drive further consolidation

VW takes over full ownership of Scania. Despite VW’s large ownership stake, Scania had remained an independently managed company.

Mahindra buys Navistar's stake in India JVs. M&M completes its purchase of the Navistar Group's stake in Mahindra Navistar Automotives Ltd (MNAL)

AB Volvo has signed an agreement with the Chinese vehicle manu-facturer Dongfeng Motor Group Company Limited (DFG) to acquire 45% of a new subsidiary of DFG, Dongfeng

Isuzu Motors Limited establishes new joint venture company in Chongqing with its partner, Qingling Motors Group.

MAN Force, a JV between Indian Truckmaker Force and MAN AG was dissolved with Force Motors having sold and transferred remaining 50% of Man Force shares to MAN AG.

MAN and its Chinese partner Sinotruk have unveiled a new truck brand for China and other emerging markets. Called SITRAK

5/2014 2/2013 1/2013 6/2012 3/2012 4/2011

Selected Truck ownership transactions 2010 - 2014

VW takes over full ownership of Scania. Despite VW’s large ownership stake, Scania had remained an independently managed company.

Mahindra buys Navistar‘s stake in India JVs. M&M com-pletes its purchase of the Navistar Group‘s stake in Mahindra Navistar Automotives Ltd (MNAL)

AB Volvo has signed an agreement with the Chinese vehicle manufac-turer Dongfeng Motor Group Company Limited (DFG) to acquire 45% of a new subsidiary of DFG, Dongfeng

Isuzu Motors Limited establishes new joint venture company in Chongqing with its partner, Qingling Mo-tors Group.

MAN Force, a JV be-tween Indian Truck-maker Force and MAN AG was dissolved with Force Motors having sold and rans-ferred remaining 50% of Man Force shares to MAN AG.

MAN and its Chinese partner Sinotruk have unveiled a new truck brand for China and other emerging mar-kets. Called SITRAK

Selected Truck Manufacturer Acquisitions 2011 – 2014



Source: Deloitte Analysis

China and Russia show the largest number of OEMs and thus the largest potential for consolidation

U.S.8

EuropeanUnion16

Russia24

CentralAmerica19

ASEAN13

Japan4

China34

India12

SouthAmerica

High consolidation pressure

Medium consolidation pressure

Low consolidation pressure

17

EasternEurope19

Low consolidation pressure Medium consolidation pressure High consolidation pressure

Number of OEMs Present in Major Markets in 2014 Drivers for Partnerships in

the Global Truck Market

Positioning in growth markets

as a prerequisite for long-term growth

Regional diversification

as a hedge against regional business cycles

Access to advanced technology

as a prerequisite for sustained competitiveness and regional diversification

Economies of scale as a lever to increase profitability

Relocation of productionas a step to increase profitabilityand proximity to growth markets

Market Overview Competitive Landscape

Source: IHS Global, Deloitte Analysis & Deloitte Global Truck Study 2014

4


4

Who owns whom in the global truck market?


Global Daimler VW Volvo Fiat

Daimler Trucks

Beijing Automotive Industry Holding

Beiqi Foton Motors

Beijing FotonDaimler

Automotive

Li-Tec(Germany)

DeutscheAccumotive

Fuso KAMAZTrucks(Russia)

Mercedes-BenzTrucks Vostok

Kamaz VectraMotor(India)

(Russia)

Daimler Group

MitsubishiGroup

Rolls-Royce Power Systems

Bharat BenzBB Freight-liner

FotonAuman

Foton

50%

100%

50%50%100%

50%

50%

11%

100%

89%

50%99%

11%

WesternStar

MercedesBenz

MitsubishiFuso

Fiat Chrysler Automobiles

Tata Motors

Fiat Group

Iveco-AMT(Russia)

SAIC-IvecoComm. Vehicle

Investment(China)

SAIC-IvecoHognyanComm.Vehicles(China)

Iveco Larimar(South Africa)

Iveco Samotlor(Russia)

Naveco(China)

AstraIveco Iveco

MagirusIveco

Hongyan

Yuejin

Dodge

Tata

51%

50%

Renault Trucks

Volvo Trucks

Hyundai MotorCompany

Dongfeng

MWMInternational

JAC Motors (Anhui Jianghuia

Automobile)

LeylandTrucks

NovotruckRussia

MotorCorporation

DongfengCummins

GuanzhouHyundai(China)

Engine(China)

DongfengNissan-Diesel

(China)Renault

Volvo Group Eicher Motors

VE CommercialVehicles(India)

Dongfeng

Dongfeng Motor Co.

Ford Otosan(Turkey)

NC2 Global(outside Nafta)

MahindraNavistar

AutomotivesLtd

MahindraNavistarEngines

NC2 GlobalJianhuai

Automobile(China)

Blue Diamand(Nafta)

NavistarJianghuai

Automobile(China)

CommercialVehicles(China)

DongfengDND

Renault

Volvo

Mack

UD Trucks

Hyundai

Eicher

18%

8%

100%

67%

50% 50%

50%

45%

50%

50%

Dongfeng Chaoyang

Diesel Engine

Ford MotorCompany

Mahindra &Mahindra

JianglingMotors Corp.

Taiyuan Changan Heavy Truck Co

Paccar

MAN SE

Scania Trucks Hino Motors

AshokLeylandMotors

Isuzu Motors

FAW GroupFAW Jie Fang

Truck

GAZ

Uralaz

CNHTCSinotruk

VolkswagenGroup AG

Toyota Group

MAZ-MAN(Belarus)

MAN ForceTrucks (India)

Cummins-ScaniaInjection

(USA)

QinglingMotors(China)

Isuzu HICOM(Malaysia) GAZ FAW

(Russia)TRW FawerCommercial

Vehicle Steering(China)

Deutz (Dalian)Engine(China)

SevertsalautoIsuzu

(Russia)

QinglingMotors

Smith ElectricalVehicles

Hinduja Group

Nissan Motors

AutomotiveInfotronics

Private(India)

Ashok Leyland Nissan Vehicles

(India)

Nissan AshokLeyland

Technologies(India)

Nissan AshokLeyland

Powertrain(India)

Jinan HuawoTrucks

XianCummins(China)

VolkswagenTrucks &

Buses Scania

MAZ-MAN

Steyr SITRAK CNHTC/Jinan

Hino

AshokLeyland

Avia

Isuzu

UralTruck

FAW Jie Fang

GAZ

HuanghePrince

Howo

MAN

Shaanxi

50%

50%

100%

72%

30%

25%

17%

51%

6%

9%

35%

50%

51% 50%

49%

51%

50%49%

100%

75%

IsuzuQingling

Engineering

Isuzu Commercial

Truck of America(Nafta)

PT IsuzuAstra Motors(Indonesia)

GM-IsuzuCommercial

Truck(Nafta)

IsuzuPhilippines

IPC

60%

100%

50%

TataDaewoo

TataCummins

(India)

Tata Group

Karsan

50%

55%

50%

50%

100%

100%50%

32%

Ford

DAF

Peterbilt

Kenworth

International

41%

100%

50%

75%

50%

25%

50%

50%

51%76%

50%

Kamaz - Engineering(Kazakhstan)

CumminsKama

(Russia)


100%

51%

80%

29%

51%

45%

20%

75%

35%

80%

25%

50%

50%

33%

50%

66%

50% 45%

50%

50%

IC Bus

51%

Engine Holding GmbH*

*Stand 08/2014

100%

DongfengMotor Group

Kamaz

Iveco

ShaanxiHeavy-dutyAutomobile

4


OEM Other Player Joint Venture Brand

Ownership Strategic Partnership Joint Venture

4

Mercedes Benz is expected to lead Daimler’s 2024 unit sales, followed by Freightliner and Mitsubishi Fuso

Other

Western Star

Mitsubishi Fuso

Mercedes Benz

Freightliner

Bharat Benz

39%

21%

1%1% 5%

33%

Company Structure Units Sold by Brand in 2024 (%)

Truck Brands by Region

Freightliner

Mercedes Benz

Mitsubishi Fuso

Western Star

Other

Bharat Benz



Daimler Trucks

Beiqi Foton Motors


Automotive

Li-Tec(Germany)

DeutscheAccumotive



(Russia)

Daimler Group

MitsubishiGroup



FotonAuman

Foton

50%

100%

50%50%100%

50%

50%

11%

100%

89%

50%99%

11%

WesternStar

MercedesBenz

MitsubishiFuso

100%

50%

50%


Kamaz


Freightliner

Freightliner

Freightliner

Mercedes Benz

Mercedes Benz

Mercedes Benz

Mercedes Benz

Fuso

FusoFuso

FusoFuso

BharatBenz

Foton

Fuso

Western Star Trucks

Western Star Trucks

OEM Other Player

Joint Venture Brand

Ownership

Strategic Partnership

Joint Venture

Source: IHS Global, Deloitte Analysis

In 2024, MAN will continue to be Volkswagen Group’s top-selling truck brand, harmonizing technical platforms across VW Group with much potential

Other

Volkswagen

Scania

MAN

35%

22%

<1%

43%


MAN

Scania

Volkswagen

Other




MAN SE

Scania Trucks

CNHTCSinotruk

VolkswagenGroup AG

MAZ-MAN(Belarus)



(USA)

XianCummins(China)

VolkswagenTrucks &

Buses Scania

MAZ-MAN


HuanghePrince

MAN

Shaanxi

50%

50%

100%

72%

30%

25%

17%

75%



Scania

MAN

Volkswagen Nutzfahrzeuge

Scania

MAN

Scania Scania

Scania

MAN

Scania

Sitrak

Scania

MAZ-MAN

OEM Other Player

Joint Venture Brand

Ownership


Joint Venture


In 2024, more than half of the Volvo trucks sold will be Volvo-branded, but further developing scale across brands remains a key factor for success

Volvo

UD Trucks

Renault

Mack

55%

10%

20%

15%


Mack

Renault

UD Trucks

Volvo




Renault Trucks

Volvo Trucks

DongfengMotor

Corporation

DongfengCumminsEngine(China)


(China)Renault



Dongfeng

Dongfeng Motor Co.


DongfengDND

Renault

Volvo

Mack

UD TrucksEicher

18%

8%

100%

67%

50% 50%

50%

45%

50%

50%

55%

50%

DongfengMotor Group


VolvoVolvoVolvo

Volvo

RenaultDFM

UD Trucks

UD Trucks

Mack

Volvo

Volvo

Eicher

Renault

Renault

UD Trucks

Mack

Volvo

OEM Other Player

Joint Venture Brand

Ownership


Joint Venture


In 2024, Fiat’s Iveco brand will still be predominantly focused on two regions: >70% in Europe and the remaining sales in South America

Other

RAM

Iveco

15%

85%


Iveco

Dodge RAM

Other




Fiat Chrysler AutomobilesFiat Group

Iveco-AMT(Russia)


Investment(China)




Naveco(China)

AstraIveco Iveco

MagirusIveco

Hongyan

Yuejin

Dodge

51%

50%

60%

33%

50%

100%

Iveco


Iveco Astra

Iveco

Iveco

IvecoDodge

Iveco

OEM Other Player

Joint Venture Brand

Ownership


Joint Venture


North America: Aftermarket Pricing is a key lever for profitable growth and deserves even more management attention

Industry Trends in the NA Truck Industry

• Growing complexity of products and services

• Inadequate coverage of older vehicles by network

• Price-sensitive customer buying behavior

• Changing distribution patterns – short haul vs. long distance

and innovative delivery solutions

Immediate Priorities and Long-Term Opportunities in Aftersales

• Implement advanced pricing capabilities moving from cost and

competition-based pricing to value–based pricing strategies

• Align product strategy to incorporate aftermarket requirements

• Improve dealer market share by improving offerings for price sensitive customers

• Alliances / partnerships to provide alternative channels

• Deploy service products – remote diagnostics, consulting and contract maintenance

The aftermarket accounts for approximately one third of total revenue

and is becoming a key differentiator for firms looking to improve profitability Q: In your opinion, how important are the following levers to increasing profitabil-ity of the aftersales segment?


-20-10

0102030405060708090

100

New business models

Second brand for spare parts

Dealer interface

Availability of spare partsPricing

Very important

Very unimportant

57

44

4455

30 38

49

12 10 10 10

30

58

6

22

22

0

10

20

-20

-10

30

40

50

60

70

80

90

100

New business models

Second brand for spare parts

Dealer interface

Availability of spare parts

Pricing

57

44

4455

30 38

49

12 10

5

105

105

30

58

6

22

22

very important somewhat important

neutral somewhat unimportant


Insights from OEMs

Winning in the aftermarket requires truck OEMs to extend current busi-ness models with new service elements and cooperation partners

Trends and Challenges Immediate Priorities Future Opportunities

Trends within the trucking industry are putting increased pressure on OEMs to capitalize on aftermarket sales to support their primary business

Low-Cost Suppliers 3rd Party Manufacturers Direct Sales with Dealers Retail Environment

• Vehicle lifecycle – Extended

part life due to improving quality

• Private label – Use of private,

value line parts to penetrate the

price-sensitive market

• Value-added services –

Expanded value-added services

offerings to improve service levels

and retain business

Products and Services

• Dealer Support – Dealers need

support to capture price-sensitive

customers

• Dealer alternate channel –

Dealers have employed alternate

channel offerings to serve the

price-sensitive market

• Warehouse & Distribution

consolidation –

Major push to increase scale and

network / buying power

Network and Channel Coverage

• Buying sophistication –

Price-sensitive customers demand

lower-priced part options

• Driver Safety – Increased

scrutiny of safety / compliance

programs

• Alternate dealer suppliers –

Dealers are developing relation-

ships with WDs and OES for non-

proprietary parts

Customer Buying Behavior

• Changing Distribution

Networks – Will the long-dis-

tance freight model change to

short haul?

• The Future of Fuel – How will

alternate fuel technologies im-

pact aftermarket support ?

Questions on Future Trends

These trends manifest themselves across the entire shipping industry ecosystem,OEMs must devise ways to strengthen relationships with players at each point to succeed


OEMs have four key levers at their disposal to arrive at a smarter competitive approach in the aftermarket business


1

2

3

4

If executed successfully, the above strategies may lift

operating margin by 6% - 8%

Improve dealer market share• Improve e-commerce capability• Utilize end-customer analytics to find market opportunities• Enhance end-customer segmentation• Integarte supply chain to get visibility into dealer inventory

and buying patterns

Utilize dealer and customer incentives• Develop loyalty program• Execute end-customer campaigns• Provide dealer incentives• Manage dealers’ inventory

Align product strategy• Manage lifecycles• Innovate to improve proprietary content• Introduce value line products• Enhance competitive analysis

Strengthen pricing capabilities• Utilize advanced pricing analytics• Employ segment-based pricing• Implement pricing tools• Ensure organization alignment


Priorities Deep Dive Pricing

Value Pricing is the most developed concept for price setting and has the greatest impact on profitability



Priorities Deep Dive Pricing

Impact of profit driver improvements Pricing Evolution – From Cost-Based to Value-Based Pricing

1% improvement in…

…improves operating profit by

• Pricing has 3-4 times the effect on profitability

than other improvement measures

• The average 5% improvement in returns on sales

from improved pricing creates $1,5 billion of additional

value over 5 years for an average S&P 500 company

• Value Pricing is a price setting method that derives the perceived customer value

• Offerings are defined based on customer preferences and willingness to pay

• A value-based pricing initiative results in a win-win situation for both

customersand the seller


0 3 6 9 12 15

Fixed Cost

Unit Volume

Variable Cost

Price 12,3%

6,7%

3,6%

2,6%

Strong

Weak

How do I recover my cost?

What was the price

of the best alternative?

What price will the market bear?

Perceived customer value

Economic and industry trends

Competitor prices

Historic costs

How much value am I

creating for my customer?

Pricing Maturity

Basis for Price Setting

Profi

tabi

lity

Impa

ct

ProactiveReactive

Cost-based pricing

Competi-tion based

pricing

Value-based pricing

Economy- based pricing

OEMs must be open to new partnerships across the entire ecosystem and reshape their process model accordingly


Truck Suppliers

Owner OperatorAggregators

FleetManagement

Service Providers

Insurance Providers

Service Providers: Develop part-supply relationships with third-party contract maintenance service providers

Owner-Operator-Aggregators: Develop relation-

ships with owner-operatoraggregators to gain access

to the independent owner-operator segment

Insurance Providers: Obtain the first right to provide replacement parts in the event of an accident

Targeted Ecosystem Partnerships

These alliances/partnerships could be particularly effec-

tive in penetrating the old-VIN vehicles that traditionally

do not use the OE dealer network for repairs

Opportunities exist to partner with a number of differ-

ent sectors within the trucking ecosystem to build rela-

tionships and gain access to new truck owners

Potential Opportunities


In Europe the telematics business is a game changer for truck OEMs

Telematics has undergone a few transitions since first appearing on the scene

Having evolved from a supporting role to providing major value-added to drivers, owners,

and OEMs, telematics puts entire new revenue streams within reach. OEMs have traditionally

focused on two core revenue streams from automotive telematics:

• Vehicle price markup

• Telematics subscriptions

But with all the data available and the potential use of that data, even more is possible.

Future OEM business models might focus on services rather than the truck itself

In 2024, the global OEM telematics market may total up to $20B US, with Europe account-

ing for the largest share

• Increasing connectivity and mounting cost pressure in the transportation business are the

main drivers for this growth

• In a very competitive market, a truck’s efficiency increasingly becomes the main buying

criterion for the customer.

While many studies show how telematics can improve truck operations and vehi-

cle management, the big question remains how OEMs stand to benefit

• Telematics is not about technology. To win the market against often cheaper aftermarket

organizations, OEMs must offer complete solutions

• OEMs need to lever their existing competitive advantage in trucks diagnostics while devel-

oping independent business models, that require integrating different skill sets from outside

the organisation

New business models have emerged that shift from selling a truck to providing

customers with new ways to improve total cost of ownership Q: In your opinion, is the field of telem-atics important for European OEMs? If yes, why?

Because telematics have an influence on TCO

Allows OEMs to collect data on customers and vehicles

Telematics as an enabler of further optimization

Telematics as the central element of future service offerings

Highly important for CRM

Information management creates added value


Source: Deloitte Analysis


4

Insights from OEMs

In telematics, the OEM hardware segment will show superior growth

Market Outlook Market Trends Recommendation

Commercial Vehicle Telematics Forecast 2014 – 2024 for OEM Hardware ($bn)

Commercial Vehicle Telematics Forecast 2014 – 2024 for Aftermarket Hardware ($bn)

Chart 2 (Stacked)

0

5

10

15

20

25

ROW

Asia

Europe

Latin America

North America

202420232022202120202019201820172016201520142013

CAGR +17.2%

Chart 2 (Stacked)

0

5

10

15

ROW

Asia

Europe

Latin America

North America

202420232022202120202019201820172016201520142013

CAGR +6.4%

North America Latin America Europe Asia ROW

Expected market size is

$11B for telematics by

the end of 2014

Source: Visiongain & Deloitte Analysis


Usually, telematics are primarily employed to address TCO. Increasingly the view on TCO is broadened to include resources and operations management

Total cost of ownership for MCV & HCV vehicles


0 20 40 60 80 100

GIT3

Licence

Addressed by telematics

Interest

Trailer

Tyres

Insurance

Repair & Maintenance

Depreciation

Overheads2

Wages

Fuel1

13 T5 years à

45.000 miles22% 39% 13% 13% 6%

Medium Commercial Trucks

0 20 40 60 80 100

GIT

Licence

Interest

Trailer

Tyres

Insurance

Repair & Maintenance

Depreciation

Overheads

Wages

Fuel

32%

26% 31% 15% 14% 7%

24% 17% 9% 7%

Heavy Commercial Trucks

26 T6 years à

50.000 miles40 T

6 years à 70.000 miles


Fuel1 Wages Overheads2 Depreciation Repair & Maintenance

Insurance Tyres Trailer Interest Licence GIT3


1 Based on 101 pence per litre Diesel2 Overheads are all business costs not specifically covered in the other cost types3 Goods in transit insurance

More than anything else, increasing cost pressure in the transportation business

drives telematics implementation. In a very competitive market, truck efficiency is

increasingly becoming the main buying criterion for customers.

Insights from OEMsQ: In your opinion, is the business area

telematics important for European OEMs? (% of respondents)

0 10 20 30 40 50 60 70 80 90 100

Navigation

Safety

Vehicle availability

OperationsManagement

(billing, delivery notes)

Fuel optimization

Optimization of resources

30%

30%

40%

50%

70%

80%

Source: Road Haulage Association, Cost Tables, Deloitte Analysis

Overview Potential Applications for “Area 3 New Telematics”Telematic Areas



There are 3 major application areas, ranging from core to adjacent to new telematics offerings


Security/Safety Management

• Track and trace

• Stolen vehicle tracking

• Critical event alerts

Vehicle Uptime Maximization

• Remote Diagnostics

• Prognostics

Smart Navigation

• Dynamic Navigation

• Telematics-based fuel

• Green routing

• Electronic toll collection

• Real-time parking

Increase revenue by:

• Boosting truck prices due to

telematics features

Fuel Optimization

• Fuel POI tracking

• Charging station

• Battery swap facility location

• Fuel-tax filing

Mobile Resource Management

• Driver and vehicle connectivity

over cellular and WiFi networks

• Two-way communication

• V2I + V2V Communication

• EOBR, HOS

• Electronic vehicle inspection

• Handheld device connectivity

Leverage Telematics assets

1. Telematics data

2. In-vehicle screen to create value

in non-automotive industries like:

• Advertising

• Energy

• Financial Services

• Health

Area 1: Core Telematics

OEM value:

Area 2: Adjacent Telematics Area 3: New Telematics

• Growing truck sales through

enhanced CRM via telematics

• Offering fleet management services

• Providing new business solutions

outside the core automotive field



OEM’s telematics assets have business value for other industry sectors


OEMs have traditionally focused

on two core revenue streams from

automotive telematics:

• Vehicle price markup

• Telematics subscriptions

However, telematics provides new

channels of access to customers as

well as new and valuable customer

insights

When aggregated and distributed

by partners these assets can gener-

ate incremental profits for OEMs

Augmentative telematics business

value opportunities in sectors adja-

cent to automotive as well as the

potential profit for OEMs


1. In-vehicledisplay & audio

6. Payment fordisplay & audio use

5. Payment for telematics advertising

4. Payment forapplication usage

2. In-app advertisingcapability 3. Text and audio ads

Advertising

Energy

Financial Services

Health

OEMPartner Company

e.g. App developers AdvertisersCustomers of

OEM’s telematics

1. Telematics data

6. Payment for data5. Payment for

gasoline4. Payment for

gasoline

2. Data, Analyticsplatform

3. Targetedpromotional offers

OEM Gas stationTelematicsCustomersOil Major

1. Vehicle andsurrounding data

6. Payment for data 5. Insurance premium 4. Insurance premium

2. Policy aligned withaccurate risk profile

3. Improved risk profiling for all customers

OEMCommon Customers

(to OEM and PC)Partner’s

customers onlyPartner Company

e.g. Auto Ins. Comp.

1. Safety warning based on driver condition, health/fitness advice

4. Payment for safety &health service

5. Payment for data and display

2. In-vehicle health monitoring data &

display/audio

3. In-vehicle health advice

OEMHealth Insurance

CompanyTelematics

Health Customers

Potential Value Streams for Level 3 new telematics


Building the right telematics organization is key to winning the market


Those without a vision for and a focus on the telematics organization

have faced greater growth challenges; organizations without a longer-

term focus have had difficulty laying the groundwork for innovative

future products and services.

Start regionally, moving towards global implantation or start as a

global entity at the outset; typically seen started as a focused, regional

level and scaled up. The drawback is a lack of global consistency at

the outset for data analysis and executive reporting, and an inconsist-

ent customer experience. In addition, the cost of multiple stand-alone

solutions is greater and comes at the expense of regional flexibility

and customization.

The telematics organization is sometimes grouped together with the

engineering and IT organizations. This may lead to the organization

becoming a cost center, limiting future revenue growth focus.

Building a telematics organization usually requires expertise and re-

sources of limited availability within the organization, which may need

to look externally for talent; skills and know-how. While such a step

may lead to advanced expertise being available, any externally fueled

growth needs to be balanced with organic growth.

Telematics is not about technology. To win the mar-

ket against often cheaper aftermarket organizations,

OEMs must offer complete solutions

Telematics solutions must be embedded in a service

organization to ensure that OEMs leverage their com-

petitive advantage, which is Truck Diagnostics and its

influence on the optimization of total cost of ownership

The challenge is developing an independent business

model with different lifecycles and supply chains for

the telematics organization

In the People dimension, content, application develop-

ment, and integration require a different skill set than

truck design or enhancement

OEMs that follow these steps consistently will

win the market

Common Telematics Organizational Challenges How to Win the Market


South East Asia Market Options: Gaining a larger share in these markets requires a tailored approach

The respondents in Deloitte’s Global Truck Study consider South East Asia the leading region

for future growth. China’s market is seen to expand only slightly while the saturated Japane-

se market is expected to stagnate.

Four groups of countries dominate the regional economic landscape

• With a per-capita GDP ≥U.S.$10,000, Singapore and Brunei represent the most mature

markets, where OEMs expand their business beyond truck sales & after-sales

• With a per-capita GDP ≥U.S.$5,000, Thailand and Malaysia will evolve away from their

emerging market status, allowing OEMs to offer the entire range of their service portfolios.

• With a per-capita GDP ≥U.S.$2,000, Indonesia and the Philippines offer an opportunity

to expand sales through dealers while transitioning into higher value added services

• With a per-capita GDP <U.S.$2,000, Vietnam, Cambodia, Laos and Myanmar repre-

sent markets to be nurtured and strongly reliant on the development of logistics networks

A set of key drivers will holistically trigger an evolution across all groups

• Development of logistics networks and increasing transport efficiency will allow re-

manufacturing and salvage businesses in less mature markets

• Domestic demand expansion and exploitation of resources will propel the after-sales

and parts business and increasing use of customer information

• Mature markets will see progressing connectivity in rural areas and increasing use of

telematics and cross-industry partnerships

Southeast Asia is the leading growth region but a one-size-fits-all approach

will not work due to different country maturities and needsInsights from OEMsQ: In your opinion, In which regions

will your company‘s turnover grow in the future? (% of respondents)

ASEAN

33%

China

11%

USA

13%



4

ASEAN countries vary by population, market size and level of economic development

65M

Myanmar

Thailand Laos

Cambodia

Malaysia

Singapore

Indonesia

Brunei

Philippine

Vietnam

68M

15M

87M

30M

248M

97M

7M

5M

0.4M

Group S: Per Capita GDP≥$10,000

Group B: Per Capita GDP≥$2,000

Group A: Per Capita GDP≥$5,000

Group C: Per Capita GDP<$2,000

NorthContinental Asia

SouthMaritime Asia

Group S: Per-capita GDP ≥ US$10,000

Group A: Per-capita GDP ≥ US$5,000

Group B: Per-capita GDP ≥ US$2,000

Group C: Per Capita GDP < $2,000

Bubble size represents population

ASEAN consists of “Northern” and

“Southern” members

North

• Thailand-centric market (“hub & spoke”)

• ASEAN highway construction will facili-

tate the interchange of people and goods

South

• Domestic demand-led market

Source: IMF, Euromonitor

Region Group A Group B Group C


Market Predictions Recommendations Cases

Group A: Countries such as Thailand and Malaysia with high maturity


Developed

• Market almost saturated

• OEMs provide all services

• Transport efficiency

• Logistics volume

• Market deregulation

2014 2024

Mature

• Market highly developed

• OEMs expand business beyond

truck sales & after-sales service

Thailand Malaysia

Market Development

Main Driver

Maturity

Focus Area

16 20

3 62 4

7 9

MCV HCV

in K Units

Eco-friendly car Low-cost masstransport

High value-addedbody building Telematics Cross-industry

partnershipSource: IHS Global & Deloitte Analysis



Group B: High market potential but less profitability


Expanded

• Widespread use of trucks

• OEMs expand sales through deal-

ers

• Resource development

• Trade volume

• Government incentives

Developed

• Market almost saturated

• OEMs provide all services

Indonesia Philippines

Market Development

Main Driver

Maturity

Focus Area

17 33

22

71 89

After-sales service

Use of customerinformation

High-qualitybodybuilding

Remanufacturingbusiness

Parts sales


2014 2024



MCV HCV

in K Units

Group C: Small markets with high industrialization potential


Nurtured

• Little use of trucks

• OEMs make few inroads

into the market

• Resource development

• Thailand – Plus One

• Labor-intense industrialization

Expanded

• Widespread use of trucks

• OEMs expand sales through dealers

Vietnam MyanmarCambodia Laos

Market Development

Main Driver

Maturity

Focus Area

1 3

1 11 1

1 147 1116 31

After-salesnetwork development

Start of customermanagement

New trucksales

Remanufacturingbusiness


2014 2024

Parts sales



MCV HCV

in K Units

OEMs must tailor their market growth strategies to a set of very diverse market needs

High market potential Suggestions for OEMs

Vietnam

Indonesia

Thailand

Myanmar

Cambodia

Philippines

Malaysia

Laos

After Sales CustomerManagement

Parts sales

RemanufacturingBusiness

Telematics Cross-industrialpartnership

• Offer differentiated services to:

- Increase customer loyalty

- Better serve mature markets

• Develop low-cost strategy to compete with

local/upcoming competitors

• Enter the market via the used vehicle business since

new vehicle market growth will be slow due to local

policies and poor infrastructure

Sales Market Entry Custom tariffs



Market Entry Strategy: OEMs can increasingly take advantage of Free Trade Agreements (FTAs) and lowered tariff barriers

Recommended Hub-Approach

• To tackle the growing and dynamic ASEAN markets

and comply with ASEAN content requirements,

OEMs commonly use one country as a regional hub,

taking advantage of low regional trade barriers

• Considerations when establishing a regional ASEAN

hub include

- Different entry tariffs and regulations for

each member state (e.g. CKD regulations)

- Regional and bilateral FTAs

- Location decision criteria (e.g. the right set of

location decision criteria to make sense of dif-

ferences in factor costs, workforce qualification,

infrastructure etc.)

• Individual markets should be addressed as required

by their respective size, maturity, and import duties

*FTA= Free Trade Agreement

For products traded among ASEAN member states, tariffs are decreasing while technological and homologation requirements are becoming harmonized

To enjoy these benefits, an ASEAN-produced content of 40% is required

Goods brought to the ASEAN region are subject to the respective requirements, incentives and tariffs of the entry country

ASEAN has concluded FTAs with China, Japan, South Ko-rea, India, Australia and New Zealand

Some ASEAN member states have concluded bilateral FTAs




Regional manufacturing strategies have to be built around localizing production and enabling a regional hub

CBU (Completely built-up)

• Vehicles do not require any additional assembly

• High effective tariffs

• Higher transportation cost

CKD/ SKD (Completely/ Semi knocked down)

• Local assembly complies with ASEAN content

requirements

• But local assembly adds supply chain complexity

• Applicable CKD/ SKD requirements to be considered

• Lower effective tax rate

• Leverages location factors

CKD/SKD and CBU Tariffs – LCVs, Trucks and Heavy Trucks1)

1) Based on Tariff Codes 8704.22 (GVW > 5t ≤ 20t ) and 8704.23 (GVW > 20t). Including individual customs rate, excise tax and other import fees. Serves as an overview and does not include rates applicable to special types of LCVs, trucks, and heavy trucks

Indonesia

Thailand

Malaysia

Vietnam

01020304050

40%

RegularCustoms Rate

EU China India

RegularCustoms Rate

EU China India

RegularCustoms Rate

EU China India

RegularCustoms Rate

EU China India

10%

40%

20%

40%

20%

40%

20%

40%

10%

40%

20%

30%

0%

50%

15%

50%

15%

50%

15%

40%

5%

30%

0%

30%

0%

30%

0%

26%

15%

01020304050

Effective Duty Rate CBU Effective CKD/SKD Rate Gap Tariff for individual parts applicable




OEMs have taken bolt action to win in the ASEAN market, with creating customer value at the core of the initiative

Business Cases

Global Heavy Duty Truck OEM

Global OEM

OEM for construction, mining and industrial machinery

Vietnam

Indonesia

Thailand

Myanmar

Cambodia

Philippine

Malaysia

Laos

After Sales

RemanufacturingBusiness

Telematics

• Forecast demand for cars/parts

• Know replacement timing of parts

• Use data for credit management

• Protect against theft (vehicle monitoring)• Offering diverse services by using

telematics

• Offering a wide range of af-

ter-sales services

• Building a remanufacturing

business

• Provide fleet management by contract

• Use genuine parts

• Provide 24h-service-and-parts support

• Offer safe-driving courses

• Provide high-quality products at a low price

• Buy back used parts

• Offer financing solutions



Contacts

Christopher Nürk

Partner

Deloitte Consulting Germany

[email protected]

Germany

Thomas Schiller

Partner


[email protected]

Global

Joe Vitale

Global Automotive Sector Leader

Deloitte Consulting United States

[email protected]

Italy

Marco Martina

Partner

Deloitte Consulting Italy

[email protected]

US

Bruce Brown

Principal


[email protected]

Asia

Yuki Kuboshima

Partner

Deloitte Consulting Asia

[email protected]

India

Kumar Kandaswami

Senior Director

Deloitte Consulting India

[email protected]

Sweden

Joakim Torbjorn

Partner

Deloitte AB

[email protected]

China

John Hung

Partner

Deloitte Touche Tohmatsu

[email protected]

Michael Maier

Director


[email protected]

Ranjit Singh

DC Principal


[email protected]

Manish Prabhu

Senior Manager


[email protected]

Britta Mittlefehldt

Manager


[email protected]

Kei Hayase

Senior Manager

Deloitte Consulting Japan

[email protected]

Julia Pabst

Senior Research Analyst

Deloitte & Touche Germany

[email protected]

Henning Buchholz

Senior Consultant


[email protected]

Authors

Global Automotive Team


4

Scope of the Analysis

About the Survey

The Deloitte Global Truck Survey was conducted by Deloitte’s Global Automotive Practice. The results of the survey are based on data from IHS Global,

analysis by the Deloitte Global Automotive Practice, and in-depth interviews with hand -selected senior executives of global truck OEMs.

Vehicle Classification

Productsegments

Regions

Weight in t Scope of analysis Weight in 1,000 lbs

Germany

Schwere Lastkraftwagen

Mittelschwere Lastkraftwagen

LeichteLastkraftwagen

Kleinlaster Light Vehicles/Cars

Light Commercia Vehicle (LCV)

Medium Commercial Vehicle (MCV)

Light Duty

Medium Duty

Heavy Duty

Class 8

Class 7

Class 6

Class 5

Class 4

Class 3

Class 2

Class 1

Heavy CommercialVehi-cle (HCV)

3.5

7.56.0

12.0

15.0

19.5

10.5

IHS United States

Commercial Vehicles

Trucks Buses VansTrailer/

semi-trailer Other

Central America

Costa Rica

Trinidad & Tob.

Mexico

Honduras

Colombia

Venezuela

Guatemala

Panama

Nicaragua

United States

Brazil

India

China

Japan

Russia

South America

Uruguay

Argentina

Chile

Paraguay

Bolivia

El Salvador

Ecuador

Eastern Europe

Ukraine

Kazakhstan

Belarus

Uzbekistan

Turkey

Asean

Indonesia

South Korea

Vietnam

Thailand

Malaysia

Taiwan

Philippines

European Union

Austria Latvia

Belgium Lithuania

Bulgaria Netherlands

Czech Rep. Norway

Denmark Poland

Estonia Portugal

Finland Romania

France Slovakia

Germany Slovenia

Greece Spain

Hungary Sweden

Ireland Switzerland

Italy Ud Kingdom

Rest of World (ROW)

Pakistan Peru

Bahamas Jamaica

Domi. Rep Australia

Neth Antilles Cuba

Saudi Arabia Barbados

Canada Haiti

Bermuda Belize

New Zealand Oth Caribbean

South Africa

Regions have been defined based on materiality and country-specific availability of sales data for MCV & HCV segment 1


4

Medium Duty Trucks Heavy Duty Trucks

Low Cost € 14.000 - € 40.000 € 22.000 - € 45.000

Midmarket € 20.000 - € 50.000 € 35.000 - € 65.000

Premium > € 45.000 > € 65.000

Daimler Trucks

Beijing Automotive Industry Holding

Beiqi Foton Motors


Automotive

Li-Tec(Germany)

DeutscheAccumotive



Kamaz VectraMotor(India)

(Russia)

Daimler Group

MitsubishiGroup



FotonAuman

Foton

50%

100%

50%50%100%

50%

50%

11%

100%

89%

50%99%

11%

WesternStar

MercedesBenz

MitsubishiFuso

Fiat Chrysler Automobiles

Tata Motors

Fiat Group

Iveco-AMT(Russia)


Investment(China)




Naveco(China)

AstraIveco Iveco

MagirusIveco

Hongyan

Yuejin

Dodge

Tata

51%

50%

Renault Trucks

Volvo Trucks

Hyundai MotorCompany

Dongfeng

MWMInternational

JAC Motors (Anhui Jianghuia

Automobile)

LeylandTrucks

NovotruckRussia

MotorCorporation

DongfengCummins

GuanzhouHyundai(China)

Engine(China)


(China)Renault



Dongfeng

Dongfeng Motor Co.

Ford Otosan(Turkey)

NC2 Global(outside Nafta)

MahindraNavistar

AutomotivesLtd

MahindraNavistarEngines

NC2 GlobalJianhuai

Automobile(China)

Blue Diamand(Nafta)

NavistarJianghuai

Automobile(China)


DongfengDND

Renault

Volvo

Mack

UD Trucks

Hyundai

Eicher

18%

8%

100%

67%

50% 50%

50%

45%

50%

50%

Dongfeng Chaoyang

Diesel Engine

Ford MotorCompany

Mahindra &Mahindra

JianglingMotors Corp.

Taiyuan Changan Heavy Truck Co

Paccar

MAN SE

Scania Trucks Hino Motors

AshokLeylandMotors

Isuzu Motors

FAW GroupFAW Jie Fang

Truck

GAZ

Uralaz

CNHTCSinotruk

VolkswagenGroup AG

Toyota Group

MAZ-MAN(Belarus)



(USA)

QinglingMotors(China)

Isuzu HICOM(Malaysia) GAZ FAW

(Russia)TRW FawerCommercial

Vehicle Steering(China)

Deutz (Dalian)Engine(China)

SevertsalautoIsuzu

(Russia)

QinglingMotors

Smith ElectricalVehicles

Hinduja Group

Nissan Motors

AutomotiveInfotronics

Private(India)

Ashok Leyland Nissan Vehicles

(India)

Nissan AshokLeyland

Technologies(India)

Nissan AshokLeyland

Powertrain(India)

Jinan HuawoTrucks

XianCummins(China)

VolkswagenTrucks &

Buses Scania

MAZ-MAN


Hino

AshokLeyland

Avia

Isuzu

UralTruck

FAW Jie Fang

GAZ

HuanghePrince

Howo

MAN

Shaanxi

50%

50%

100%

72%

30%

25%

17%

51%

6%

9%

35%

50%

51% 50%

49%

51%

50%49%

100%

75%

IsuzuQingling

Engineering

Isuzu Commercial

Truck of America(Nafta)

PT IsuzuAstra Motors(Indonesia)

GM-IsuzuCommercial

Truck(Nafta)

IsuzuPhilippines

IPC

60%

100%

50%

TataDaewoo

TataCummins

(India)

Tata Group

Karsan

50%

55%

50%

50%

100%

100%50%

32%

Ford

DAF

Peterbilt

Kenworth

International

41%

100%

50%

75%

50%

25%

50%

50%

51%76%

50%

Kamaz - Engineering(Kazakhstan)

CumminsKama

(Russia)


100%

51%

80%

29%

51%

45%

20%

75%

35%

80%

25%

50%

50%

33%

50%

66%

50% 45%

50%

50%

IC Bus

51%


*Stand 08/2014

100%

DongfengMotor Group

Kamaz

Iveco


4


OEM Other Player Joint Venture Brand

Ownership Strategic Partnership Joint Venture

4

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