MAN Truck & Bus is one of Europe’s leading manufacturers of commercial vehicles and has production facilities in three European countries, Russia, South Africa 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 recorded further slight growth at a high level in 2018. The European market volume in the segment for trucks over six tons amounted to around 369,000 (previous year: 356,000) units. Of the larger volume markets, in particular Germany, France, Poland, and Italy saw further growth, whereas demand declined moderately in the United Kingdom. Outside Europe, the market contracted at a very low level, especially in Turkey. The Russian market deteriorated during the course of the year and only recorded minimal year-on-year growth. In the Middle East, the segment for European manufacturers once again declined significantly. New registrations for MAN Truck & Bus rose to around 61,000 units in the European market for trucks over six tons (previous year: 55,500 units). This saw MAN Truck & Bus increase its market share to 16.5% (previous year: 15.6%).
The European bus market saw positive development in 2018, coming in at 30,500 (previous year: 29,800) units. The Italian, Polish, and Czech volume markets continued to expand materially in the year under review, while demand eased in France, the United Kingdom, Sweden, and Austria. Outside Europe, the Russian market continued to recover. The South African market, in which MAN has been the market leader since 2014, was almost on a level with the previous year. MAN Truck & Bus recorded a 9% increase in new registrations in the European market for buses over eight tons, posting a figure of around 4,400 units. With a market share of 14.5% in 2018, MAN Truck & Bus again noticeably improved upon the prior-year figure (13.4%).
Order intake at MAN Truck & Bus rose year-on-year to €12.6 billion in 2018 (previous year: €11.3 billion). Measured in terms of units, order intake was up 20% on the previous year at 112,915 vehicles (previous year: 94,003 vehicles).
The Trucks business recorded an order intake of €10.5 billion (previous year: €9.4 billion). The unit figure rose by 20% year-on-year to 104,605 trucks (previous year: 87,028 trucks). This was mainly driven by positive year-on-year growth in Germany and Poland. The unit figures for the Trucks business also include the MAN TGE van series, for which MAN Truck & Bus received 10,087 (previous year: 3,261) orders in the reporting period.
At €2.1 billion, order intake in the Buses business in 2018 was up 15% on the prior-year figure (€1.8 billion). The unit figure rose significantly year-on-year to 8,310 buses (previous year: 6,975 buses). This was driven by positive growth in Singapore, Norway, and Mexico, among other factors.
MAN Truck & Bus generated sales revenue of €10.8 billion, a year-on-year increase of 8% from €10 billion. At 102,556 vehicles (previous year: 89,987 vehicles), unit sales grew in line with sales revenue.
Sales revenue in the Trucks business rose to €9.1 billion (previous year: €8.5 billion). Unit sales were up 14% on the prior-year figure at 95,352 (previous year: 83,661 trucks). Growth was particularly positive in Germany, France, and Poland. The unit sales figure of the Trucks business included 7,871 MAN TGE vans (previous year: 2,212 vans).
Sales revenue in the Buses business increased to €1.7 billion (previous year: €1.6 billion). 7,204 (previous year: 6,326) buses were sold, equivalent to year-on-year growth of 14%. This was driven by increases in unit sales in Singapore, Germany, and Poland, among other factors.
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 TRATON GROUP.
MAN Truck & Bus’s operating profit amounted to €402 million (previous year: €532 million) in the year under review. The operating return on sales was 3.7% (previous year: 5.3%). The reason for the year-on-year decline was the considerable expenses required to restructure the activities in India. As part of its focus on future issues, MAN Truck & Bus decided to cease production and sales of the MAN CLA and to sell the plant in Pithampur. Excluding the associated expenses, MAN Truck & Bus’s operating profit was approximately on a level with the previous year. Positive effects from the increase in sales revenue were offset by higher expenses for new products and markets and the intense competition, among other factors. In order to grow profitably in the future, MAN Truck & Bus will continue to concentrate on measures to optimize processes and the cost structure. The focus on continuous improvement and operational excellence is creating the basis for this.