DAIMLER TRUCK HOLDING AG 
(MT Newswires) -- Martin Daum, CEO of Daimler Truck, reports that the company's shares have risen significantly on the back of revenue growth forecasts. The company forecasts a significant increase in revenues of up to 60% by the end of the decade, supported in part by growth in sales of zero-emission trucks and buses.
Daum expresses confidence in the transition to electric vehicles, despite the higher cost of these vehicles compared to combustion engine vehicles, due to their efficiency and ability to reduce CO2 emissions.
He stresses the importance of the cost of CO2 and regulations in purchasing decisions. Although demand for electric passenger vehicles is declining in the US, Daum is not worried about the commercial vehicle sector, where purchasing decisions are based on economic efficiency rather than personal factors. If electric trucks are more efficient at transporting goods, they will be chosen by buyers, otherwise they won't be.
Daum explains that, despite an expected fall in unit sales, the company anticipates a margin of up to 10.5%, thanks to a stabilisation of the market after record years in 2022 and 2023, as well as the expansion of the after-sales service, which has contributed to a significant increase in profits.
Faced with competition, such as Elon Musk's announcement about the possibility of producing Tesla's semi-electric truck in Germany, Daum expresses reservations about Tesla's ability to sell electric trucks at the same price as diesel trucks. He points out that Daimler Truck sold far more electric trucks than Tesla in California in 2023.
Finally, Daum affirms its confidence in Daimler Truck's global position, noting that the company produces between 520,000 and 530,000 trucks a year, with the capacity to grow further. He stresses the diversity in the trucking industry, where a wide range of trucks is needed, as well as the importance of an extensive service network. He dismisses the idea of consolidation or mergers and acquisitions in the industry, saying that the market is already sufficiently consolidated with four major global players.
