World’s No.1 truckmaker Daimler to expand in China image

Daimler AG to expand in China and India to maintain its position as the world’s No. 1 manufacturer of heavy trucks, Bloomberg reported today. This move comes after it narrowly held on to that rank last year as its global market share dropped to 11% from 15.2%.

China’s FAW Group Corp. overtook Sweden’s Volvo AB to reach second place in global truck sales, with the Chinese company’s market share increasing to 10.5% from 7.1% against a decline at the Scandinavian manufacturer to 5% from 8.1%, according to Daimler data.

Daimler Trucks is seeking government approval to start a joint venture in China with Beiqi Foton Motor. The plant is due to start production in 2012, and Daimler is searching for a sales partner. It is also building a factory in India and raising capacity in Brazil.

Sales of heavy trucks in China, India and Brazil will continue “stable” growth while the western European market will bottom out in 2010 and post a “slight” increase for the full year, and U.S. industrywide demand will rise by about 15%, Daimler said.

Daimler’s heavy truck sales will be less than the 472,100 units delivered in 2008. It intends to boost its market share by spending 2 billion euros on low-emission technology in the next two years and on overhauling its model line-up.

Last week, Daimler AG, which also makes Mercedes-Benz luxury cars in Beijing, signed a memorandum of understanding with BYD Co. to build electric cars together in China.

Source: Gasgoo