Daimler Trucks Witnesses 20% Increase in Its Sales in 2021
Daimler (OTC: DDAIF) Truck, a newly branched-out entity in the commercial vehicle maker sector, reportedly sold 455,000 units in 2021. Though the sale was five times more than last year, the company was still 13 percent less than its pre-pandemic levels. Nevertheless, the company benefited from a recovery in its most important markets, especially in the first half of 2021.
The company also stated that supply chain blockages slowed its production and constrained volume growth, especially for heavy-duty vehicles, particularly in the second half in the United States and Europe.
Although Trucks Asia did not do well in its Buses sector with a sale of only 19,000 units, the company grew best with an overall increase of 30% in its revenue.
Daimler Truck, which rolled out from Daimler last December, leads the global truck-making sector based on its revenue. The company is awaiting its full annual report results and forecast for 2022 on March 24.
The recently created autonomous group, Daimler Truck, will publish its report on unit sales numbers that will be based on the various industrial business sectors offered at its Capital Market on November 11, 2021, Mercedes-Benz, Trucks North America (Freightliner, Western Star, Thomas Built Buses), Tucks Asia (FUSO, BharatBenz) and Buses (Mercedes-Benz & Setra). In spite of the deteriorating situation in the semiconductor market towards the end of the year, all the sectors attained their volume targets that were set at the Capital Market Day on November 11, 2021.
Daimler Truck made a sale of 118,000 units of Mercedes-Benz for the 2021 fiscal year based on its segments, as compared to 141,000 units sold in 2020.
Markus Schaefer, Daimler Chief Technology Officer, stated that the company is expecting a shortage in the supply of chips, all through 2022, primarily in the first half of the year. Due to this Daimler, is anticipating that there will not be a substantial increase in its production during the first six months of 2022.
As per the industry figures, the European Union faced an all-time low in its car sales due to the stagger created by the COVID-19 pandemic in the auto sector and the scarcity of computer chips.
According to the data from the European Automobile Manufacturers Association (ACEA), new passenger cars registered in the European Union dropped by 2.4% in 2021, which was 9.7 million vehicles, this was the lowermost since statistics began in 1990.
The main reason that was holding the industry back was a shortage of semiconductors, which are computer chips used in various car systems in both traditional and electric vehicles. ACEA said that car production was explicitly impacted specifically during the second half of 2021 due to the shortage of semiconductors.
Initially, automakers modulated the consequences of the chip shortage; however, the concern ultimately compelled them to slow their production and even leave their factories idle.
According to Alexandre Marian at the AlixPartners consultancy, the beginning of 2022 will continue to have problems regarding the supply of chips. This situation should improve by the middle of the year; however, there might be other issues, such as raw materials, supply chains, and lack of labour.
The pandemic has also caused skyrocketing raw material prices and labour shortages in some areas.
Germany is undoubtedly Europe's largest car market, reportedly for one-quarter of total sales of more than 2.6 million vehicles last year.
According to an automotive data analytics firm, the weakening of European sales might also signify a sharp increase in the average price of cars and the anxiousness of consumers regarding electric vehicles. Therefore, it is urging the customers to delay their purchases and hold on to their current vehicle for a longer time.