Daimler is the world’s largest truck manufacturer as of now. Many major players in the luxury car segment have a subsidiary division which brings them not only brand loyalty, but also a significant road presence. Volvo and Daimler are the two major players in this segment and so are they in the world of luxury coaches, vans and trucks with trucks being the one of the strongest points for both of them.
And yes, there is intense competition in this segment as well. Volvo, the Swedish automotive maker is looking well on track to overtake Daimler as the number 1 truck maker and for this purpose, they intend on increasing their operation base and what country better than China to start this. Volvo will be entering into China through a joint venture with Dongfeng and the deal is said to be worth $900 million.
Volvo will acquire a 45 percent stake in the joint venture with Dongfeng and the company will take care of the medium and heavy duty trucks for the Asian region where Volvo’s presence is not much as of now. The Chinese truck market has been growing constantly over the past few years and the same trend is expected in near future as well. The Chinese truck market, like the car market is one of the fastest growing market and every company would want to eat a pie of it.
Last year the Chinese truck market was home to sales of 6,36,000 heavy duty trucks with the number of medium-duty vehicles standing at 2,90,000. This pretty much means that there is scope for expansion in the market, all Volvo has to do is hit at the right point of time and now seems to be the best time. The company will earn significant profits and in the process, it might just become the number 1 world over in the truck department, if not in the passenger vehicle segment.