Scania has posted a higher than expected rise in third quarter orders largely due to customers in Europe buying outgoing models before sales are halted ahead of new emission rules due at the end of this year.
The Swedish truckmaker, majority owned by Volkswagen, said its order intake rose almost 30% year on year in the quarter to 21,809 vehicles. Europe’s heavy truck makers have seen orders climb because of a growing need to replace ageing fleets and a buying spree of Euro 5 compliant trucks that typically cost roughly EUR10,000 (US$13,800) less than their successors.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Scania, which has increased output to meet demand, said order intake of trucks in Europe, which accounts for roughly half its business, rose 84% while easing in Latin America in the face of strong sales a year ago.
Reuters noted, however, the new year may bring a downturn with European demand likely to ease once sales of Euro 5 trucks end. The Brazilian government is also expected to scale back the generous subsidies that has swelled the truck market there.
