Daimler Trucks' Second-Quarter Report Analysis:

Daimler Trucks' Second-Quarter Report Analysis: Global Commercial Vehicle Market Pressure and Transformation Trends.

1.Financial performance: Both revenue and profit declined, with electrification being the only bright spot

Daimler Trucks' revenue in the second quarter of 2024 was 13.3 billion euros, a year-on-year decline of 4.3%. Adjusted earnings before interest and taxes were 1.17 billion euros, a year-on-year decrease of 18.1%. The profit from the industrial business was 1.16 billion euros, a decrease of 2 billion euros compared with the same period last year. Global sales reached 112,000 units, a year-on-year decrease of 14.9%, but sales of pure electric models soared by 69% to 648 units, highlighting the effectiveness of the electrification transformation.

In the first half of 2024, the group's cumulative sales reached 221,000 units (year-on-year -14%), with sales of zero-emission models reaching 1,461 units (year-on-year + 118%), and the penetration rate of electrification rose from 0.3% to 0.7%. Weak demand in core markets such as North America and Europe has been the main reason for the decline in performance.

2.Regional Markets: Contraction of core Sectors and Differentiation of emerging Markets

North American market: Demand for heavy trucks has dropped from a high level

The market for grade 8 heavy trucks declined by 15% year-on-year in the second quarter, and the cumulative decline in the first half of the year was 11%. Daimler's sales in North America reached 94,000 units in the first half of the year (year-on-year - 5%). Among them, the sales in the US market decreased by 7% to 79,000 units, while those in Mexico increased by 10% to 11,000 units, and the sales in Canada remained unchanged. The shrinking demand for tractors is the main drag factor.

European market: Under dual pressure from policy and demand

The number of new registrations of heavy trucks in the 30 EU countries decreased by 4% in the first half of the year and by 3% in the second quarter. Mercedes-benz's truck division sold 62,000 vehicles in the first half of the year (year-on-year - 15%), with sales in the EU market plummeting by 27%. The decline in the second quarter alone reached 40%. However, in the Brazilian market, due to the upgrade of Euro VI emissions, sales increased by 85% to 12,000 units in the first half of the year and by 57% in the second quarter.

Asian market: The Indonesian general election has dragged down core businesses

The sales volume of the Asian department in the first half of the year was 57,000 units (year-on-year - 29%). The Indonesian market plunged by 56% due to the impact of the presidential election, while Japan and India decreased by 11% and 8% respectively. Weak demand in the 30 EU countries and Southeast Asia has further exacerbated the decline.

3. Business Support: Finance and R&D have grown against the trend

Financial services: In the first half of the year, new financial lease contracts worth 5.8 billion euros were signed (up 17% year-on-year), with Europe, South America (up 32%) and North America (up 14%) being the main growth drivers. The contract amount at the end of the period was 30.4 billion euros (up 7% year-on-year), with significant contributions from the business of the United States and Germany.

R&D investment: In the first half of the year, R&D expenditure was 1.04 billion euros (up 16% year-on-year), and in the second quarter, it was 531 million euros (up 16% year-on-year), with a focus on the iteration of electric and intelligent technologies.

4.Full-year Outlook: Conservative Expectations amid Economic Slowdown

Daimler predicts that the global economy will grow by 2.5% in 2024, with the eurozone reaching a peak of 1% and the United States at 2.5%. Constrained by the tightening of monetary policy and geopolitical risks, the annual sales volume is expected to be 460,000 to 480,000 units, with revenue ranging from 53 billion to 55 billion euros. The EBIT is expected to be "significantly lower" compared to last year, and the industrial business revenue is expected to be between 50 billion and 52 billion euros.

Industry Insight: The global commercial vehicle market is undergoing a structural adjustment characterized by "contraction of traditional demand and acceleration of electrification". Policy compliance (such as Euro VI and safety standards) and regional economic fluctuations have become key variables for short-term performance, while technological investment and diversified market layout will determine long-term competitiveness.