VW commercial vehicle group Traton sees orders drop from record high

DPA
·1 min read
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The MAN logo hangs on the façade of an office building in Parkstadt Schwabing, in the north of the Bavarian capital. The Volkswagen Group's lorry and bus subsidiary, Traton, saw commercial vehicle orders drop by 21% last year, after a very strong 2022. Incoming orders totalled 264,800 vehicle in 2023, the Munich-based company announced on 22 January. Peter Kneffel/dpa

The Volkswagen Group's lorry and bus subsidiary, Traton, saw commercial vehicle orders drop by 21% last year, after a very strong 2022.

Incoming orders totalled 264,800 vehicle in 2023, the Munich-based company announced on Monday.

The company produces commercial vehicles under the MAN, Scania and Navistar brand names, as well as Volkswagen Truck & Bus brands in South America.

According to Traton, the drop in orders is a sign that pent-up demand and production delays from the coronavirus pandemic and the fallout from Russia's full-scale invasion of Ukraine have eased and conditions are normalizing.

But uncertainties around economic conditions and higher interest rates on loans have also impacted demand for new commercial vehicles, the company said.

Traton said its order backlog extends into the second half of the year.

Total sales last year hit a record high of 338,200 vehicles, an increase of 11% over 2022, as the company previously announced.

The stabilization of the supply chains and the increased production volume helped contributed to the record sales figures.