Truck operations' focus areas and strategic objectives

In addition to South America and Eastern Europe, Asia and Africa are important growth markets for the Volvo Group. Read more about the Volvo Group's development in Africa.

Focus area 3: Capture profitable growth opportunities

We want to retain and strengthen our position as a profitable and global player in the truck industry. This is crucial given that high volumes help us achieve economies of scale and maintain our priority position among suppliers and retailers. Organic sales growth should be on par with or surpass the weighted average for our competitors.

3.1 By optimizing the brand assets become number 1 or 2 in combined Group Trucks HD market share
Our brand portfolio represents a unique strength. It is our goal to become number 1 or 2 in combined Group Trucks market share for heavy duty trucks in mature markets. In a number of markets we can optimize the manner in which we use our brand portfolio, also addressing new customer segments. Other measures include ensuring the right product quality and the appropriate coverage in sales and service networks.

3.2 Establish required commercial presence to support revenue growth by 50% in APAC (Asia Pacific) and 25% in Africa
New markets are emerging and we must lie ahead of the projected growth curve. This requires that we cover strategic locations, understand the specifics of selected emerging markets, and adapt our business models accordingly.

3.3 Establish required Order to Delivery footprint and supply chain in APAC and Africa achieving lead time reduction by 15% and capital tied up reduction by 15%
This relates to further developing what has already been built up and set in motion in the Asia Pacific region, and gearing up in Africa to match our commercial ambitions for that continent. Reaching this target will require action in such areas as sourcing strategies and supplier performance, as well as industrial and logistical structure.

3.4 Increase aftermarket sales per unit in operation by 12%, including total commercial solution offer for second and third owner
This objective aims to increase our share of the aftermarket business, covering the first, second and third owner of the trucks. We will achieve this by providing a competitive offering for parts and services wherever the location of the vehicles. Our offering should encompass all of our customers’ needs.

3.5 Build 1 billion SEK new businesses complementary to existing offering
We recognize the potential for new business, and for expanding our current offering, in such areas such as vehicle productivity. Other examples include revenue streams from the truck end-of-life phase and from services facilitated by connected vehicles.