Introduction to the European truck market

Heavy-duty vehicles (HDVs) represent a significant portion of road-transport greenhouse-gas (GHG) emissions, accounting for more than one quarter of such emissions in the European Union (EU) and over 6% of the total EU emissions. Trucks are the primary component of this segment, representing 90% of all HDV sales in 2024. Despite this, only 2.3% of the 327,896 trucks sold in the EU in 2024 were zero-emission (ZE) vehicles, totalling 7,500 units.

To address these emissions, the EU Commission has established strict regulatory frameworks. CO2 emission reduction targets are set at 15% by 2025, 45% by 2030, 65% by 2035, and 90% by 2040, relative to a 2019/21 baseline. The market is currently led by major manufacturers, including Daimler Truck (18%), Volvo Trucks (17%), and MAN (15%), followed by Scania, Iveco, and DAF Trucks.

Announcements of ZE and ICE, R&D and investments

Research into media and company announcements from 2019 to 2025 reveals a multi-pathway investment strategy, though transparency remains limited. Paccar/DAF Trucks allocated €738 million for a new electric truck assembly plant in the Netherlands, which opened in 2023. Daimler Truck announced a €70 billion investment plan for 2021–2025, although only an estimated €11.3 billion is directly attributable to the truck segment. Daimler is also involved in the cellcentric joint venture with Volvo Group, valued at €1,278 million, and the Milence charging network joint venture.

Iveco Group reported a €1 billion investment to renew its portfolio across diesel, gas, and electric versions, though the specific share for ZE technology is unspecified. Within the TRATON Group, MAN invested €400 million in R&D for the MAN eTruck and €130 million in production facilities in Poland. Scania plans to allocate €2 billion for a production hub in China from 2025 to 2028. Volvo Trucks has focused on its cellcentric partnership and the acquisition of Proterra’s battery business for €194 million.

Key financial data

In 2024, the combined global revenues of the five major manufacturers totalled €198 billion, with Daimler Truck, Volvo Group, and TRATON each generating approximately €50 billion. European revenues accounted for 36.8% of this total. Between 2019 and 2024, the companies spent an average of 8.3% of their revenues on R&D and investments. The Volvo Group had the highest expenditure in this area, reaching €26.7 billion over the period.

Profitability has recovered following the impact of COVID-19, with the group accumulating a total global net profit of €57 billion between 2019 and 2024. However, the report highlights that 66% of this sum (€37 billion) was paid out to shareholders as dividends or share buybacks. From 2020 to 2024, the growth in shareholder returns (€7.2 billion) exceeded the growth in R&D and investment spending (€5.7 billion), suggesting a prioritisation of shareholder returns over zero-emission transitions.

Comparison of financial data with media announcements

A comparison between public announcements and official financial statements indicates a lack of transparency. The total value of all identified announcements (€40.4 billion) represents only 42% of the actual R&D and investment expenditure reported in financial statements. The Volvo Group showed the lowest level of transparency, with announcements covering only 6.7% of its reported spending, despite experts considering the company an early adopter of electrification.

Experts consulted for the report hold varied views. While Volvo is seen as a frontrunner, DAF and Iveco are regarded as laggards in the transition. Some experts believe the manufacturers are moving fast enough given hurdles like charging infrastructure and price, while others argue they are underfunding battery-electric trucks relative to new entrants. The EU Taxonomy was found to provide no material added value in understanding these transition efforts.

Conclusion and recommendations

The report concludes that the top five European truck manufacturers have sufficient financial leeway to support more substantial R&D and investments into ZE technology. However, there is a systemic lack of transparency in reporting. Companies fail to clearly distinguish between spending on ZE versus internal combustion engine (ICE) technologies, and often lack granular geographical or vehicle-type breakdowns.

It is recommended that every company implements measures for improved reporting. Financial statements should provide greater granularity on ZE and ICE directions and geographical divisions. For companies like TRATON, better coordination of announcements across subsidiaries is needed. Paccar/DAF and Iveco are encouraged to improve their transparency regarding ZE innovations to close the perceived technology gap with competitors.