Thursday, April 17, 2025

Swedish car giant in trouble – 16 percent has disappeared

Scania's first-quarter sales figures show a 16 percent drop. Owner Traton blames a difficult market, while customers are hesitant to place new orders for electric trucks.

The market for heavy vehicles proved challenging at the start of the year. This is clearly evident in the Swedish company Scania's financial statements for the first quarter of 2025.

Sales plunge significantly by 16 percent for the truck manufacturer. Parent company Traton Group describes the situation as tough for the industry.

Specifically, Scania sold 22,200 vehicles globally in the first three months of the year. This is a significant decrease of 4,000 vehicles compared to the same period last year. At that time, total sales for the quarter were 26,400 vehicles.

The decline at Scania is the most significant within the Traton Group. Although it is a clear loss, it does not come as a big surprise to industry insiders.

Other brands in the group also experienced a decline in sales, including MAN in Germany and International Motors in the USA.

However, their sales did not fall as much as Scania's. They performed relatively better through the first quarter of the year.

Traton Group and market developments

However, some brands under Traton went against the grain. Volkswagen Truck & Bus actually managed to increase its sales during the period.

Hampus Engellau is an automotive analyst at Handelsbanken. He follows developments closely.

He points out that Traton's figures are consistent with the trend of other major players. Competition is fierce globally.

"Traton's numbers are largely in line with Daimler's," Hampus Engellau tells Dagens Industri . This indicates a general slowdown.

A major reason for the current development lies with customers. Many companies are hesitant to place new orders for trucks right now.

Scania's future and order backlog

Traton itself recently confirmed this to investors. The uncertain market is negatively affecting customers' investment decisions.

Full details of Scania's and Traton's financial results for the quarter are still pending. An in-depth report is expected to be published later in April.

Although the start of the year has been difficult for Scania, not everything looks completely bleak. The Swedes still have an order book they can draw on.

The existing order backlog can help maintain production for a period of time. It acts as an important buffer against declining production. At least in the short term.

Overall, the first quarter paints a picture of clear challenges for Scania. Market conditions and current customer hesitation are pushing sales figures downward for the well-known truck manufacturer.

If you are interested in more news about trucks and the transport industry, you can read more about why only 0.26 percent of Scania's sales consist of electric trucks here .

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