Truck manufacturer Traton is feeling the effects of the slowdown in the commercial vehicle market. Incoming orders fell by three percent in the first quarter, as the manufacturer of trucks and buses under the MAN, Scania, Navistar and VW brands announced on Friday.

The head of the Volkswagen subsidiary, Christian Levin, spoke of a "normalization". The market in Europe and the USA in particular is cooling noticeably, although it is still at a high level compared to the pre-corona period. Things are going better in Latin America. The spare parts and maintenance business is strong.

Traton is benefiting from the fact that many heavy trucks are currently being sold, which usually bring a higher return than smaller commercial vehicles, said Levin. "It's a pretty favorable situation, we have a strong pricing environment and a good product mix." In the first quarter, the company increased turnover by five percent to 11.8 billion euros, although sales fell by four percent in the same period. Profit increased by 171 million to 1.1 billion euros.

The figures were well received on the financial market: Traton shares rose by more than five percent. Analysts at Citi pointed out that the result was better than expected. Jefferies analysts stated that expectations for the year as a whole are now likely to be raised.

Traton itself confirmed its forecast and continues to expect sales figures and turnover to range between minus five and plus ten percent. How the European commercial vehicle market will continue to develop depends on key interest rates, said Levin. Logistics companies are feeling the effects of rising wages, fuel prices and insurance premiums, which they can only partially pass on to their customers. Their fleets are now comparatively old. In order to invest, they are dependent on lower interest rates. "If interest rates do not fall, the outlook is gloomier." The outlook is better in the USA, where things are likely to pick up strongly.

The market for electric commercial vehicles is not developing as hoped. "We are not selling enough," said Levin. Scania alone is very far behind its target of 10,000 electric vehicles sold. Levin said a change was needed: with cheaper electricity, a higher CO2 price and a more developed charging infrastructure.

(Report by Christina Amann, edited by Ralf Banser. If you have any questions, please contact our editorial team at Berlin.Newsroom@thomsonreuters.com (for politics and the economy) or Frankfurt.Newsroom@thomsonreuters.com (for companies and markets)