Europe Multi-Industry: Truck read-across from IAA Transportation - Day 1

We attended the IAA Trucks fair in Hannover on 15 September, meeting with Traton, Volvo, Paccar (DAF), Foton and Cummins, and came away with five high-level industry conclusions. Market environment remains supportive in both North America and Europe despite Germany lagging, with mixed views on US pricing: Paccar expects an exit rate of c.300k units of annual production by year-end, while Volvo noted deferred replacement demand (normally c.275k units per year) continues to support 2027. Most truck OEMs have opened 2027 order books, but Paccar and Traton have not yet decided pricing for EPA27-compliant MY27 trucks given the undecided non-compliance penalty;