Opportunity markets
North America and China
With its Scania, MAN, International, and Volkswagen Truck & Bus brands, the TRATON GROUP is one of the world’s leading manufacturers of commercial vehicles. As it employs its future growth strategy, the Group has set its sights on two regions in particular.
Trucks, vans, or buses: Customers can purchase products of the TRATON GROUP in virtually every country in the world. However, the Group’s brands are much more widely available in some regions than others. “We generate 50% of our sales revenue in Europe with MAN and Scania. We are the market leaders here,” Malte Schmitz says. Schmitz was Head of Strategy and Business Opportunities at TRATON until the end of 2024, when he took on the role of Head of Group Planning & Reporting. South America is another core Group market, he adds. Here, too, the Company is the market leader with its brands Scania and Volkswagen Truck & Bus. “Europe and South America are our roots,” Schmitz says. “We were already firmly established here when TRATON was founded as a company from today’s perspective, you can also see what we failed to do in geographical terms as we implemented our strategy in 2015 namely, create a strong presence in North America and Asia.”
Global profit pools
TRATON uses profit pools to tap the growth potential of a possible market: “We monitor those areas in the world where truck and bus manufacturers are generating profits today and will generate them in the future and track the size of these profits.” This profit pool is expected to increase as a result of worldwide economic growth and the transformation of the transport industry. Schmitz predicts that the United States and China will generate the largest growth in future years. “As a profit pool, the United States has always been No. 1 in terms of the absolute profit generated with trucks and buses in the local market,” the strategist says. He does not expect the situation to change in the future. China is already the leader in terms of the volume of commercial vehicles sold, Schmitz notes. Forecasts indicate that the People’s Republic of China will continue to be a major factor in terms of profitability as well. The market’s appeal is expected to surge.
“We monitor those areas in the world where truck and bus manufacturers are generating profits today and will generate them in the future and track the size of these profits.”
Malte Schmitz, Head of Strategy and Business Opportunities until the end of 2024 at the TRATON GROUP
Opportunity market North America
When automotive executives speak of North America, they usually mean the United States. This is also the case for commercial vehicles. The logistical needs of the world’s largest economy are massive.
The TRATON GROUP has only been represented in North America, the world’s most profitable market for commercial vehicles in absolute terms, for a relatively short time, since 2021. International, which was known as Navistar at the time, joined the Group that year, bringing brand awareness and a huge sales and service network with it. In return, the company profits from TRATON’s expertise. “International now has access to our shared technologies,” Schmitz says. “This creates growth potential for TRATON and puts us in a good position to expand further in North America.
With the company’s own powertrain
The first step toward achieving this growth is the S13 Integrated Powertrain for heavy commercial vehicles. International has been producing this mechanism in the company’s plant in Huntsville, Alabama, since 2023. For years, the company used to buy this key component externally. The S13 is International’s version of the Common Base Engine (CBE), a powertrain that the Group developed for all its brands (additional information about the CBE). “We expect the new powertrain to become a strong growth driver for International,” Schmitz says. “With the help of our own powertrain, we will also be able to profit from the aftersales business.“
Toolbox for success
In applying future technologies, International will draw on the TRATON Modular System (TMS), the Group’s shared technology toolbox (additional information about the TMS). From battery-powered drive systems and self-driving vehicles to digital services and financing solutions, International is well positioned as a member of the TRATON GROUP. “We have set the right priorities in North America,” Schmitz says. “We want to do something more than just benefit from the general growth in this market. We are also confident that we can gain market share as well.” This ambitious goal is also reflected by the name change from Navistar to International in September 2024, a step that saw the brand return to its roots.
“North America, specifically the US, is a huge opportunity for TRATON’s growth and International is poised to deliver. Our return to the International brand marks a catalyst for change. Together with our 500+ dealer network, we are transforming into a solutions-led, digitally enabled partner dedicated to shared curiosity and creative innovation with our customers to help solve their toughest challenges.“
Tobias Glitterstam, Chief Strategy & Transformation Officer at International
Opportunity market China
China is by far the largest volume market for commercial vehicles. At the same time, customers and new technology trends are developing rapidly, a process that will make China increasingly important as a profit pool in the future. In addition to China’s potential as a profit pool, Schmitz sees another reason for an increased commitment to the country. Digital services and solutions as well as new technological developments already play an important role here. “We can learn a lot in China,” he says. Up to now, the brands of the TRATON GROUP have been underrepresented in the People’s Republic of China. Trucks made by the company’s brands are available as imports. This situation will change in 2025, when production kicks off in Rugao, where the TRATON GROUP’s first plant is being built in China.
Local production
With an annual capacity of about 50,000 trucks, the plant will produce Scania brand vehicles. The local team is working intensely to set up sales and service capacities. “This will be a turning point for us,” Schmitz says. “Local production will enable us to serve not only the Chinese market, but also other Asian markets that extend all the way to Australia. Thanks to our plant in China, we will expand the production capacities of the TRATON GROUP.”
”China is one of the global innovation centers for new industry-specific technologies. At the TRATON GROUP, we are now developing the TRATON Modular System. My team has been assigned to contribute to the development of this industry-unique product and production system by ensuring that Chinese technologies and solutions are included where relevant. Success in this regard will ensure that the whole TRATON GROUP remains globally competitive.”
Sonia Ederstål, Head of Scania R&D Asia
Lisle, Illinois
Headquarters of International. The old name, which was reintroduced in 2024, reflects the brand’s ambitions.
Huntsville
International manufactures the S13, a powertrain that serves as a growth driver, here.
San Antonio, Texas
International tests self-driving trucks here. With the TRATON Modular System, the brand has access to the Group’s technologies of the future.
Rugao
- The TRATON GROUP’s first plant in China is being built here.
- The plant will have an annual capacity of 50,000 trucks.
- The new plant will produce vehicles for the Asian market.
