Total deliveries from the Volvo Group’s truck operations fell by 3% in May compared with last year, sales across the world showing a mixed picture reflecting contrasting economies.
Total deliveries by market for all brands (Volvo, Mack, Renault, UD and Eicher) in the first five months stood at 94,344 units – flat on last year.
Deliveries of Volvo branded trucks in May decreased by 9% to 9,285 vehicles compared to the same period last year. Volvo said that deliveries in Western Europe declined by 18%, as the markets in southern Europe continue to be impacted by the economic downturn. Volvo said that “given the current economic development in Europe, we are evaluating if the announced increases in production rates will be implemented as planned”.
However, deliveries to Eastern Europe increased by 13% in May. Volvo noted that growth in Russia the economic growth is continuously strong, underpinned by construction investment.
Deliveries in North America were flat in comparison with the same period last year as the supply pipeline, particularly for highway customers, has caught up with demand, Volvo said.
May deliveries in Latin America for Volvo Trucks decreased 21% to 1,681 trucks as compared with 2,118 trucks in May 2011. Deliveries continue to be impacted by the implementation of new emissions regulations requiring Euro V technology, as well as the slow economic growth in Brazil and Argentina.
Deliveries for Mack branded trucks in May totalled 2,687 vehicles, increasing 59% compared with May 2011 as North American sales surged by 80% (to 2,426 units). Construction-related demand is beginning to show modest signs of recovery, and Mack continues to improve share in regional highway segments.
In May, 4,570 Renault branded trucks were delivered, a decline by 18% compared to the year-earlier period. The decrease was mainly due to lower deliveries of light-duty trucks, Volvo said.
In Western Europe, deliveries were down by 26% in May. Deliveries to markets in Eastern Europe held up better due to a good performance in Russia and declined in total by 6%.
Deliveries of UD branded trucks in May totalled 1,889 units an increase by 44%. In Japan, 805 trucks were delivered in May, an increase by 124% compared with the year-earlier period. Deliveries in May 2011 were negatively affected by the disruption of parts supply caused by the earthquake disaster in Japan last year. The overall demand for vehicles with lower environmental impact increased this year because of the governmental subsidy programmes and tax break.