Market conditions

In the first eight months of 2011, the total number of registrations in Europe 29 (EU, Norway and Switzerland) increased by 48% to 158,046 heavy-duty trucks (106,560). The main drivers of demand continued to be the northern and central parts of Europe, where markets such as Germany and France have showed good progress. In general demand is higher in the long haul segment, whereas activity in the construction segment remains low in the southern parts of Europe. Recently there has been a slight slowdown in demand in Europe. In 2011, the total market for heavy-duty trucks in Europe 29 is expected to increase to a level of about 240,000 trucks (previously 230,000-240,000). Given the macro-economic development it is difficult to assess the total market for heavy-duty trucks in Europe 29 for 2012. The current estimate is that the market will experience a moderate decline of about 10% in 2012.

Demand in Russia has recovered strongly from low levels, and is set to show continued growth across all segments.

Through September 2011, the total market for heavy-duty trucks in North America increased by 46% to 148,307 trucks compared to 101.307 in the previous year. Replacement demand continues to be the primary driver of new truck sales, particularly highway tractors. Activity in the refuse sector has remained steady. Ongoing weakness in construction has been partially offset by demand for heavy-duty trucks vehicles in energy-related enterprises. In 2011, the North American market for heavy-duty trucks is expected to reach a level of about 210,000 trucks, (previous estimate:  230,000-240,000). For 2012 the total market is expected to grow by about 20%.

In South America, the Brazilian heavy-duty truck market continues to grow primarily driven by favorable macro-economic development and some pre-buying ahead of the new emission regulations that come into effect on January 1, 2012. The total market in Brazil increased by 4% to 84,294 heavy-duty trucks for the first nine months of 2011 (80,902). The total Brazilian market is expected to reach about 120,000 heavy-duty trucks this year and record a slight decline of about 10% for the full year 2012.

In Japan the market for heavy-duty trucks was 17,448 vehicles in the first nine months of 2011 (19,825), which was a decrease of 12%. Following the earthquake and the subsequent tsunami that hit Japan on March 11, there are signs of a market-recovery during the latter part of 2011 and into 2012. For the full year 2011 the market is expected to amount to about 25,000 heavy trucks. For 2012, the total Japanese market for heavy-duty trucks is expected to increase by about 20%.

In India, the market for heavy-duty trucks through July 2011 rose by 10% to 137,989 trucks (125,289).