The Traton Group announced it is preparing to transition to manufacturing electric trucks by investing $1.9 billion in research and development of e-mobility by 2025.
Traton, which is in the process of acquiring Navistar International, also is scaling back investments in conventional drives. By 2025, conventional drivers will make up less than one-fifth of the company’s product development and the share of product development dedicated to electric mobility will have doubled, company officials said in a press release.
“Traton is setting a clear focus on electric trucks. This transition will not happen overnight. It will be gradual, sustainable, and in line with the required network expansion. If there is no charging infrastructure, it will not work,” said Matthias Gründler, chief executive officer of Traton SE.
The company’s main focus will be on battery-electric vehicles, officials said.
Traton’s CEO believes that the profitability of an electric truck and the amortization of its batteries come down to constant, heavy usage. And this is especially the case in long-haul heavy-duty transportation, company officials said.
Tranton brands have set concrete targets for 2025 and 2030: electric vehicles will make up around 10% of Scania’s European unit sales in 2025, with half of MAN’s new buses also equipped with an electric drive system by the same year. By 2030, every second vehicle sold by Scania will be powered electrically and at least 60% of MAN’s delivery trucks and 40% of its long-haul trucks will be zero-emission.