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Investing.com -- Traton Group on Monday said it expects a sluggish truck market in 2025, forecasting a slight downturn in demand across its core regions, sending its shares down by over 3%.
The Volkswagen (ETR:VOWG_p) Group’s unit anticipates unit sales across all its brands could range between a decline of 5% and a growth of 5%, reflecting uncertainty in the global economic landscape.
The industrial vehicle manufacturer, which owns brands such as Scania, MAN, and International, projects that sales revenue will follow a similar trajectory, fluctuating within the same range.
The cautious outlook comes after a year of steady financial performance. In 2024, Traton increased its sales revenue by 1% to €47.5 billion, despite lower unit sales.
The company attributed this resilience to a favorable product mix, effective price management, and strong financial services growth. Adjusted operating return on sales improved to 9.2%, exceeding its own projections of 8.0% to 9.0%.
Christian Levin, CEO of Traton Group, acknowledged the challenges ahead, citing a potential slowdown in global economic activity. “We expect the global economy to lose some momentum in 2025. Against this backdrop, our diversified business model and the enhanced collaboration within the Traton Group will be key pillars of our success,” Levin said in a statement.
While Traton remains committed to its long-term strategy of electrification and sustainability, the immediate market conditions appear less promising.
The company projects an adjusted operating return on sales between 7.5% and 8.5% for 2025, signaling a likely dip from 2024 levels.
Traton’s brands reported mixed performances in 2024. Scania saw revenue grow to €18.9 billion, benefiting from strong demand in South America.
MAN, however, struggled with weaker demand in Europe, particularly in Germany, leading to a 17% drop in unit sales.
International, the North American subsidiary, increased revenue by 1% to €11.1 billion but faced declining new truck registrations and weaker demand for heavy-duty trucks.
Volkswagen Truck & Bus performed well, growing revenue by 18% and increasing unit sales by nearly a quarter.
Traton recognizes that geopolitical uncertainties, especially in the United States, could further affect business conditions.
Despite these challenges, the truck and bus maker remains committed to stability through cost control, cross-brand collaboration, and investments in sustainable transportation.