heavy-duty trucks in Europe, manufacturers are looking with
increasing interest at investments in Brazil, Russia, India and
China – the so-called BRIC countries – to offset the economic
difficulties they are facing at home.
the way with a series of investments in the BRIC territories and
other major emerging markets.
Last month it purchased Volkswagen’s truck division in Brazil
for almost €1.18 billion, its biggest acquisition in recent
times.
As a result of this deal it now has a market share in Brazil for
trucks of around 30 percent. It also hopes to easily offload its
trucks of more than five tons, which are popular in both South
America and South Africa.
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In December, MAN increased its share in a joint venture with
Force Motors, an Indian commercial vehicle manufacturer, from 30 to
50 percent. Force Motors specialises in the production of heavy
trucks, particularly including chassis, construction-site tippers
and semitrailer tractors.
In China, MAN is still in negotiations with an undisclosed
partner to make a “big step” in the Chinese market. It is also
now
the biggest importer of trucks to Russia.
MAN is likely to continue its expansion into emerging markets on
the back of expectations that the demand for heavy trucks will
increase in these markets in 2010 and beyond.
Despite having been hit by the current economic crisis, the
Russian truck market is one that is expected to expand over the
next few years. Volvo, the Swedish truck maker, opened a new
factory in the Kaluga region in January which is expected to
produce 15,000 vehicles a year.
Daimler Trucks, the German company, paid $250 million (€195
million) in December for a 10 percent stake in Kamaz, the biggest
Russian heavy-duty trucks manufacturer with a market share in
Russia of more than 30 percent. Volvo and Iveco also made bids for
the Kamaz deal before losing to Daimler. Daimler is also planning
to expand its heavy duty segment in Brazil (where it has had a
commercial vehicle plant since 1956), as well as a 50-50 joint
venture with Chinese giant truck manufacturer Beiqi Foton, to
produce heavy-duty trucks in China. It still needs Chinese
government approval to finalise this deal. Production of the trucks
and their engines would start after 2011.
A Daimler spokesperson said that its move to Russia is part of
its wider strategy to increase its presence in BRIC countries, and
to be positioned to be able to respond to market cycles, such as
being prepared to reduce production during a period of low demand.
The spokesman said that its financial services arm was following
the parent into many of the emerging markets.
