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Daimler Buses has set ambitious goals for the future

The company is already a leader in its global core markets and wants to further expand this position by 2030. Furthermore, the Daimler Truck Group bus manufacturer wants to achieve an adjusted return on sales of 9% by the end of this decade, understanding that conditions favorable market conditions may occur. In fact, Daimler Buses plans to reach 8% in 2025. The plans are for the company to become even more profitable, even in less than ideal conditions. Above all, the aim is to provide the Company with the means to afford the necessary investments related to transformation and to reinforce its competitiveness in the long term.

Along with the consistent expansion of its electric bus portfolio, Daimler Buses plans to further align its service offering with new customer needs. Furthermore, it intends to boost the digitalization of products and processes in order to create greater added value for customers and increase the company's efficiency. The implementation of all measures will be done in a coordinated manner, contributing to a holistic customer-oriented strategy. This positioning was announced by Till Oberwörder, CEO of Daimler Buses, at an event held on March 18 in Madrid, capital of Spain.

Till Oberwörder: “The transformation of our industry is in full swing and the demand for environmentally friendly means of transport is continually increasing. We can make the world more sustainable with our buses free of local CO2 emissions and thus make a significant contribution to mitigating the effects of climate change. We are firmly convinced that this is the ‘decade of the bus’. We intend to do our best to make the most of the opportunities that open up and, from a strong position, leave our mark on the transformation with unparalleled products and services.”

Bus traffic is expected to grow, which demands an increasing focus on CO2 neutral vehicles...Bus travel is expected to increase significantly across the world in the coming years. The Organization for Economic Co-operation and Development (OECD), for example, estimates that the demand for mobility by bus will increase by around 10% in Europe and Latin America, between 2019 (i.e. before the Covid-19 pandemic) and 2030.

The biggest driver of this trend should be urban public transport. In this context, the focus will continue to shift significantly towards buses free of local CO2 emissions. The European Union, for example, established corresponding specifications at the beginning of 2024: at least 90% of all purchases of new urban buses by fleet owners must consist of vehicles free from local CO2 emissions, from 2030 onwards. Also from 2030 , the plans are for highway buses to emit 45% less CO2.

Buses and trucks with electric transmissions, components and technologies that are as similar as possible...Daimler Buses consistently pursues a clear roadmap across all segments for electrification. Battery-powered urban buses have been mass-produced since 2018. Intercity electric buses are expected to follow this trend from the middle of this decade until 2030. It also intends to generate a significant contribution to the company's profitability through product development. To this end, future plans envisage buses increasingly sharing electric drivetrains, components and technologies, wherever possible, with electric trucks from the Daimler Truck Group. Daimler Buses will announce more news about its electrification strategy at its ‘eMobility Days’ at the end of the year.

Focus on electrical systems and traditional services...Daimler Buses intends to further intensify the business of its subsidiary Daimler Buses Solutions GmbH related to electrical systems that all come from a single source. Electric fleet operators are increasingly requesting complete solution packages. By joining forces with Daimler Buses and other partners, Daimler Buses Solutions GmbH is able to provide all the necessary electronic infrastructure for depots.

The company is currently working on more than 20 projects and has been serving customers across Europe since mid-2023. Earlier this year, Daimler Buses Solutions GmbH reached an important milestone in a major project: the construction of 41 battery charging stations, with a total of 122 stops in the bus depot of a public transport operator in The Hague, Netherlands. The subsidiary is also expanding its portfolio to include hydrogen infrastructure for future needs.

Daimler Buses experts also intend to further develop the strengths of traditional services for both electric and conventional vehicles. These services include, for example, a dense network of workshops to ensure rapid repair of vehicles that have been involved in an accident or have broken down. To this end, the company continues to have its own service points throughout Europe. Plans aim to further increase the availability of spare parts with the help of 3D printing methods.

Digital services will increase efficiency for customers and businesses...Daimler Buses plans to further boost digital services and will therefore rely on state-of-the-art analysis tools and artificial intelligence. The company intends to create, for example, 'digital twins' of its buses, in all series, in order to provide the best possible support to customers in the after-sales process. This involves the complete digitalization of all buses that will be produced in the future, making it possible to identify worn-out parts or, in the event of a breakdown, replacement parts more quickly.

The plans aim to implement digital assembly of buses throughout production, which means that all components of the respective series will be digitally compiled in advance and in the correct sequence for assembly, with analysis of the individual stages of the process. This makes it possible to optimize the assembly process in advance in order to reduce subsequent process modifications to a minimum, which contributes to an even more efficient production process.

Furthermore, Daimler Buses plans to introduce ‘OTA’ (‘over-the-air’) updates across its portfolio. The first vehicles are expected to be equipped with this technology from the middle of the decade, allowing buses to be updated to the latest version of the software - quickly, simply and without the need for a visit to the workshop.

2023 results - significant increase in unit sales and return on sales...Daimler Buses defended leadership in its main markets in Europe and Latin America in 2023. The company sold around 26,200 units worldwide and therefore , is significantly above the previous year's level, at 9% more. The increase in unit sales was mainly due to a recovery in the European bus market, which led to a significant increase in unit sales in Europe of 26% to around 8,000 units. In 2023, the company generated an adjusted return on sales of 4.7%, which is a significant increase from the previous year (PY 0.4%). Positive market development and consistent implementation of efficiency measures made these good results possible.

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