Strong market

The South American market for heavy-duty trucks rose by 7% to 148,000 trucks in 2011 compared to 138,800 the year before.

Brazil is the largest market by far in South America. With 111,500 heavy-duty trucks in 2011 (109,800) Brazil accounted for approximately 75% of the total market in the region. The Brazilian market was primarily driven by the positive economic development in the country. Against the background that Brazil moved directly from the Euro III emission standard to Euro V on January 1, 2012 order intake is expected to be relatively weak in the beginning of the year. The total market for heavy-duty trucks in Brazil is expected to record a slight decline and reach a level of about 105,000 trucks for the full year 2012.

The construction equipment market rose by 18% in 2011 compared to the strong 2010. The South American market for construction equipment is expected to grow by 0-10% during 2012.

The South American bus market was strong during the year and is estimated to have grown by more than 30%. The total bus market in Brazil increased by 25% to 4,900 buses, driven by prebuys ahead of the changeover to Euro V and by many procurements of BRT-systems (Bus Rapid Transit) in the cities. Volvo Buses increased its market share to 23%.