Development by continent – South America
Strong performance in Brazil
After weakening in 2012, the South American truck market strengthened in 2013, primarily as a result of the favorable trend in Brazil. The Volvo Group reported its best year to date in South America in terms of truck deliveries.
Volvo strong in improved truck market
The South American market for heavy-duty trucks increased to 151,500 trucks in 2013 compared with 145,500 the year before. Brazil is the largest market by far in South America and accounted for 69% of the total market in the region. In 2013, the total Brazilian market for heavy-duty trucks rose by 19% to 103,800 trucks compared with 87,400 trucks in 2012, positively impacted by the slightly improved trend in the Brazilian economy, a good crop season and support from a favorable government financing for purchases of trucks, known as the Finame program.
Increased market shares in Brazil
Volvo’s success in the Brazilian market continued in 2013. In the segment for trucks above 16 tons, the market share in Brazil rose to 20.0% compared with 18.2% in 2012 and 17.1% in 2011. Volvo has gained market share continuously in recent years. In 2010 the market share was 15.0% and in 2009 it was 13.3%.
Volvo has also strengthened its position in the medium heavy-duty segment in recent years, due to the success of the Volvo VM, and had a market share of 12.0% in 2013. The new Volvo VM line for Latin American was introduced in August 2013 at an event in Trancoso in the Northeast of Brazil. The offering was further enhanced with a new cab exterior, several new models and the I-Shift automated gearbox.
Greater interest in electromobility
The South American bus market improved during the year. In Brazil, the market was positively affected by Finame and procurement for the World Cup. Interest in Bus Rapid Transit solutions remains high in the region. Volvo Buses sold 190 buses to San Salvador. The buses will operate in the city's BRT system.
The total heavy bus market in Brazil amounted to 4,200 buses (4,400). With a market share of 19% (25), Volvo Buses is the third largest bus brand in heavy buses in Brazil. In all of South America, Volvo Buses deliveries decreased by 5% to 2,434 vehicles (2,560).
There is a clear trend towards electromobility in South America, with interest in hybrid and electric vehicles. Volvo Buses secured a breakthrough order in the region for 200 hybrid buses for Bogotá in Colombia. The buses will form part of the city’s Bus Rapid Transit system, TransMilênio. It was also significant that the order comprised a total solution that includes complete vehicle maintenance and the access to hybrid battery capacity at a fixed monthly cost.
Volvo CE expands production in Brazil
Following the two good years in 2011 and 2012, the trend in the construction equipment market continued to be good in 2013. In total, the market increased by 4% in 2013 compared with 2012.
However, Volvo CE’s deliveries in South America declined by 9% to 3,568 machines in 2013, one of the reasons for which was the weaker demand from the mining industry.
Manufacturing of SDLG excavators began in August in a new plant at Volvo CE’s facility in Pederneiras, Brazil. Four crawler excavators between 13.8 and 24.3 tons will initially be manufactured. SDLG excavators have been sold in Brazil for more than four years and during this period the company has established itself as one of the leading suppliers in the value segment.
During the year Volvo CE also decided to consolidate its production capacity in the Americas by relocating the manufacturing of Volvo-branded backhoe loaders from Tultitlan, Mexico to Pederneiras, Brazil. The first backhoe loader manufactured at the facility in Pederneiras left the plant at the end of October.