MAN Truck & Bus is one of Europe’s leading manufacturers of commercial vehicles and has production facilities in three European countries, Russia, South Africa, India, and Turkey. Its product portfolio comprises vans, trucks, buses, and diesel and gas engines, as well as passenger and freight transportation services.
Range of products and services
In 2017, MAN Truck & Bus expanded its product range to include large vans, making it a full-range supplier of commercial vehicles with a weight of between 3 and 44 t for all areas of application and special-purpose vehicles with a gross train weight of up to 250 t. The new MAN van, which has been given the model name MAN TGE, was developed in cooperation with Volkswagen Commercial Vehicles and will be produced together with the identical Volkswagen Crafter van at the new Volkswagen plant in Września, Poland. To complement the entire expanded commercial vehicles portfolio, MAN Truck & Bus is pursuing a targeted, futureoriented strategy by offering its customers an extensive range of services from a single source.
The European truck market was relatively steady at a high level in 2017 following significant growth in the previous year. The European market volume in the segment for trucks over 6 t amounted to around 356,000 (previous year: 355,000) units. The market remained at a very low level in a number of regions outside of Europe that are important to MAN, such as Turkey. In Saudi Arabia, the segment for European manufacturers once again declined significantly. By contrast, the truck markets in China, Russia, and India performed extremely well. New registrations for MAN Truck & Bus trucks over 6 t in the European market were on a level with the previous year at approximately 55,500 units, giving the company a market share of 15.6% (previous year: 15.7%).
The European bus market saw slight positive development in 2017, coming in at 29,800 (previous year: 29,400) units. The Spanish and Italian volume markets continued to expand in the year under review, while demand eased in the United Kingdom and the Czech Republic. Outside Europe, the Russian market, in particular, recovered from the lows of the preceding years, which were driven by recession. The South African market, in which MAN has been the market leader since 2014, saw a decline in 2017. MAN Truck & Bus recorded a 12% increase in new registrations in the European market for buses over 8 t, posting a figure of around 4,000 units. With a market share of 13.4% in 2017, MAN Truck & Bus noticeably improved upon the prior-year figure (12.2%).
The Trucks business generated an order intake of €9.4 billion (previous year: €8.8 billion). Measured in terms of units, orders rose by 9% compared to the previous year to a total of 87,028 (previous year: 79,757) trucks. This was mainly driven by the significant year-on-year rise in order intake in Russia and Poland. By contrast, order intake in Germany and other countries developed negatively yearon- year. The figures for the Trucks business also include the new TGE van series for the first time. MAN Truck & Bus received orders for 3,261 TGE vans.
Sales revenue in the Trucks business rose by 9% to €8.5 billion. Unit sales were up significantly on the prioryear figure at 83,661 (previous year: 77,073) trucks, mainly as a result of higher unit sales in Russia. Countries such as the United Kingdom and the Netherlands, however, saw a downward trend in unit sales. The unit sales figure of the Trucks business included 2,212 TGE vans.
Order intake in the Bus business was up 18% on the prioryear figure, at €1.8 billion (previous year: €1.6 billion). Higher year-on-year order intake in Israel, Saudi Arabia, Portugal, and other countries had a part to play here. Orders increased by 12% overall to 6,975 (previous year: 6,211) buses. Sales revenue came in at €1.6 billion (previous year: €1.5 billion). The company sold 6,326 (previous year: 6,126) buses, with positive unit sales growth in Israel, among other countries.
Research and development
The megatrends have a direct influence on future developments in freight transportation and the commercial vehicle industry – and therefore also on the Commercial Vehicles business area. The consequences include the need to reduce fuel consumption as a result of stricter emission laws, rising energy prices, growth in road transportation, targeted relief for traffic-sensitive areas such as city centers, and increasing safety requirements for road users. Our customers also aim to continuously increase their costeffectiveness and reduce the total cost of ownership (TCO).
To satisfy customer needs, MAN strives to make the world of transportation safer, more efficient, and more environmentally friendly – in this respect, it is focusing on the three groundbreaking fields of automated driving, connectivity, and climate-friendly drives. In addition to continually enhancing and developing its range of products, MAN’s research and development activities therefore focus on reducing fuel consumption, cutting emissions, alternative drives, the use of alternative fuels, and improving active and passive safety. MAN is also actively addressing the challenges posed by digital transformation and, to this end, initiated the RIO digital brand – an open, cloud-based platform for the entire transportation industry that operates as an independent brand of Volkswagen Truck & Bus.
MAN Truck & Bus’s operating profit improved significantly on the prior year, rising to €532 million (previous year: €416 million). The operating return on sales climbed to 5.3% (previous year: 4.5%). Considerable positive impact was provided by the growth in sales revenue and the successful completion of the PACE2017 program for the future, which covered all areas in the company and which enabled MAN Truck & Bus to increase its profitability and its competitiveness sharply. The reversal of provisions also had a positive impact. Earnings were diminished by the year-on-year increase in expenses for new products and expenses relating to the digital transformation, among other factors.