Volvo, the world's second-biggest truck maker, posted a 20% surge in truck deliveries for the January-July period, boosted by strong markets in Europe and North America, Reuters reported.

However, deliveries in Western Europe failed to match, growing only a modest 4%, the report added.

"What people wonder now is when Western Europe can come back in terms of orders, which is of decisive importance for the next year. The longer it takes, the bigger the risk for 2006," Evli Bank analyst Anders Berg told the news agency.

Volvo reportedly said on Thursday that it delivered 126,001 trucks in January through July, up from 105,423 units in the same period of 2004.

"This is still a good market, a really good one," Kaupthing Bank analyst Hampus Engellau told Reuters, adding: "The most interesting thing is that Volvo's deliveries in Europe have improved, even as they have hiked prices."

The report said deliveries of by the Volvo Trucks brand rose 20% while those of its U.S. Mack brand increased 52%.

"The deliveries reflect the historical high order intake seen in the first several months of this year," the firm told the news agency. "Order intake has slowed somewhat to a more sustainable pace, but buying interest remains strong and sales results continue to run well ahead of last year."

Renault Trucks deliveries rose by 8%, Reuters added, noting that the heavy trucks market has been a bright spot in an otherwise sluggish vehicles industry over the past year, with truck makers such as Volvo, DaimlerChrysler and MAN seeing strong demand in North America, Asia and Europe.

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