An Opinion Electrification of Commercial Vehicles Is Still in Its Infancy

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Arnd Franz, CEO of the supplier Mahle, considers the race to electrify trucks to be wide open, according to dpa ...

“This is a battle of the giants,” Arnd Franz told dpa at the IAA Transportation trade show in Hanover. When it comes to electrification, the commercial vehicle segment is still at a much earlier stage than the passenger car market. Here, the cards are still being shuffled. While European manufacturers dominate large parts of the global market and Chinese manufacturers dominate China, “But with the transition to electric trucks, that could change now,” Franz continued. Technology and the supply chain both play a fundamental role. Unfortunately, the battery supply chain is almost entirely dominated by China, as Frank notes.

Newcomers Will Likely Find It Difficult

But, as Franz went on to explain: “I would never underestimate European engineering!” He said it’s simply a matter of building vehicles tailored to the needs of customers in Europe. However, a newcomer to the market can’t learn that overnight. In his opinion, a functioning dealer and service network is also essential—something that is vital for a freight forwarder’s survival. Consequently, it won’t be easy for newcomers to establish themselves in the very conservative European market. “As a supplier, however, we operate globally and do business with all commercial vehicle manufacturers around the world,” Franz noted. Competition with Chinese suppliers, he added, is one of the most intense areas in which Mahle is currently operating.

Mahle Expects Demand to Increase for Trucks and Other Vehicles

The Stuttgart-based (Germany) company currently generates about 20 percent of its revenue from the commercial vehicle business. Demand for these vehicles is expected to grow faster than the global economy. After all, nothing works without trucks. “We believe that growth rates of over three percent per year are conceivable on the global market. And we want to grow faster than the global market,” said the manager. He also said he could envision a significantly higher market share in China. And the company will continue to benefit from economic growth in India. In addition to regional factors, electrification will also be a major growth driver, because Mahle can generate nearly twice as much revenue per vehicle with battery-electric trucks as with internal combustion engine trucks. Franz: “And if there are perhaps even more fuel-cell vehicles in the next decade, then our revenue potential per vehicle would increase significantly once again.”

Mahle Returns to Profit After Cost-Cutting Measures

Mahle's revenue fell from 11.68 ($13.43 billion) to approximately 11.26 billion euros ($12.95 billion) in 2025. It should be noted that net income declined from 22 ($25.3 million) to 20 million euros ($23 million). However, this still marked Mahle’s third consecutive year in the black, following several years of losses. The company has implemented several cost-cutting programs in recent years, which have also resulted in numerous job losses.

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