Middle East blamed for slide in Scania sales

Outlook for Middle East remains 'uncertain' says Scania president

Scania's Q3 booking orders halved in the Middle East in 2012.
Scania's Q3 booking orders halved in the Middle East in 2012.

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Scania has reported a drop in sales in the Middle East in its interim report for the nine months to September 2012, as global sales by the Swedish manufacturer of trucks and buses decreased by 12% to $8.72bn, from $9.87bn last year.

Deliveries in the Asia region (including the Middle East) fell by 59% compared to the third quarter of 2011 to 1,460 (3,530) trucks. "The downturn was mainly related to the Middle East," said Martin Lundstedt, president and CEO.

"Order bookings in Asia fell to 1,629 (2,459) units compared to the third quarter of 2011, mainly attributable to the Middle East where order bookings halved. The outlook in the Middle East is uncertain," said Lundstedt.

Scania, which is part of the Volkswagen Group, has been hit hard by the embargo on Iran, where it had production facilities. It also is not as active in the Saudi Arabian market as some of the other major truck brands, since it does not have an assembly plant.

But according to one truck dealer who spoke to PMV, the impact on Scania reflects the wider business confidence in the region, which is being impacted by a number of factors, including the situation in Syria, and the oft-cited delay between projects being awarded and starting on site.

For Scania, sales were also slow in Europe and Brazil in the third quarter, although Russia remained a bright spot.

 

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