(Adds comments from Kepler Cheuvreux and Ålandsbanken)
Preliminary orders for heavy-duty trucks (Class 8) in North America totaled 19,700 units in November, down from 24,500 units the previous month and marking a 47 percent year-over-year decline.
This is according to the latest data from ACT Research.
"Although last month's announcement regarding EPA'27 brought much-needed clarity to the market, the clear bottleneck for stronger order activity remains the lack of profitability among trucking companies. Spot rates continue to hover at record lows, and while supply is easing in the market, demand within key freight sectors remains subdued," said Carter Vieth, analyst at ACT Research.
Among others, Volvo and Traton are major sellers of heavy-duty trucks on the North American market.
"Overall, Class 8 order intake continues to be weak. November is typically one of the strongest months of the year as manufacturers fill up next year's order books. The low figure was largely expected, but recent signals that the EPA27 regulation may indeed move forward have sparked some hope for order support, even though no formal decision has been made yet," Kepler Cheuvreux noted in a comment. The research firm reiterates its buy rating on Volvo with a target price of 285 kronor.
Ålandsbanken also weighed in on the ACT data, which came in lower than the bank's expectations of 22,000-23,000 units.
"One explanation for the weak order intake could be that Daimler and Traton have reportedly offered customers free cancellations following tariff-related price increases implemented during the month - the final statistics later in December will provide clarity on this issue. The annual order rate is clearly below replacement needs, and we expect orders to pick up in the coming months. Negative for truck stocks today, but it does not change the long-term investment case," Ålandsbanken wrote in its morning note.
