Daimler Truck Reports Strong Performance in 2024 Despite Market Challenges

Key Highlights:

• Daimler Truck reported strong financial performance in 2024.
• Sales of battery-electric trucks increased by 17%, while Free Cash Flow rose by 12%.
• Group revenue dropped 3%, and adjusted EBIT decreased by 15%.
• The Trucks Asia segment, including BharatBenz, saw a 22% decrease in unit sales.
• DICV's Oragadam plant manufactures BharatBenz trucks, buses, and Mercedes-Benz coaches.

Daimler Truck shared its 2024 financial results, showing strong growth despite lower demand in Europe and Asia. Daimler Truck is the parent company of Daimler India Commercial Vehicles (DICV). Daimler Truck operates through five reporting segments: Trucks North America (Freightliner, Western Star, Thomas Built Buses), Trucks Asia (FUSO, RIZON, BharatBenz), Mercedes-Benz Trucks, Daimler Buses(Mercedes-Benz, Setra), and its Financial Services division. With over 40 locations and more than 100,000 employees globally, the company remains a leader in the commercial vehicle industry.​

The company reported a 17% increase in battery-electric truck sales. It also saw a 12% rise in Free Cash Flow for its Industrial Business, reaching €3,152 million, up from €2,811 million in 2023.

Global commercial vehicle sales totalled 460,409 units, a 12% decrease from 526,053 units in 2023. However, sales of battery-electric vehicles increased significantly to 4,035 units, showing rising demand for sustainable transport solutions. The Trucks Asia segment, which includes DICV’s BharatBenz brand, saw a 22% drop in unit sales, falling to 125,234 units from 161,171 units in 2023. Revenue for the segment decreased by 13%, reaching €6,111 million compared to €7,060 million last year. 

Group revenue slightly dropped by 3%, reaching €54.1 billion in 2024, down from €55.9 billion in 2023. Adjusted EBIT also saw a 15% decrease, falling to €4,667 million from €5,489 million the previous year. Incoming orders for the entire Group also dropped by 2% in 2024, mainly due to weaker demand in the EU30 region, India, Indonesia, and other Asian markets. However, order intake in Q4 2024 increased by 15% compared to Q4 2023, driven by positive growth in Mercedes-Benz Trucks and Trucks Asia.

Looking ahead, Daimler Truck expects unit sales in 2025 to be between 460,000 and 480,000 units, similar to the 2024 total of 460,409 units. The company is focused on transforming towards CO2-neutral driving, using its technological expertise and customer-centered solutions.

About DICV

DICV, a fully-owned subsidiary based in Chennai, plays a key role in Daimler Truck's global presence by producing BharatBenz trucks (10-55 tons), buses, and Mercedes-Benz coaches at its 400-acre Oragadam facility. This plant, with an investment of over INR 9,560 crores, also manufactures products for export to more than 60 markets across Africa, Asia, Latin America, and the Middle East.

Also Read: DICV’s Oragadam Plant Achieves IGBC Platinum Certification

CMV360 Says

Daimler Truck’s performance in 2024 shows they are still doing well, but the drop in sales and revenue in some areas shows that there are still challenges in the market. The increase in battery-electric truck sales is a good sign, but the overall decrease in vehicle sales is concerning. The boost in orders during the last quarter of 2024 is promising, especially for Trucks Asia, but it’s unclear if this will continue next year. The company’s efforts towards CO2-neutral driving and focus on new technology are recommendable.