Consumer Discretionary

<p style="text-align: justify;">The acceptance of used trucks in different regions of the world will likely change as the shift toward electric-driven vehicles gains momentum. &nbsp;</p><p style="text-align: justify;">While the demand for used trucks is expected to remain high in some regions, others may experience a decline as more customers opt for newer, cleaner, and more efficient models. Especially recognizing this background, sustainability becomes more and more important for the total lifecycle of a truck.&nbsp;</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 14pt;">Market Trends of Used Trucks&nbsp;</span></h2><p style="text-align: justify;">North America and Europe are currently the largest markets for used trucks, with strong demand from individual buyers and fleet operators. There is a growing interest in electric trucks in these regions, with some major manufacturers already introducing new models to the market. As a result, used trucks will likely face tougher competition from electric alternatives, which may impact their resale value. &nbsp;</p><p style="text-align: justify;">Of course, that will depend on the region one is looking at. &nbsp;</p><p style="text-align: justify;">The main questions will be whether those regions are ready to implement an electric vehicle parc infrastructure and what level is expected in the specific region or country regarding the readiness for electric mobility. &nbsp;</p><p style="text-align: justify;">In contrast, the demand for used trucks will likely remain high in regions such as Africa and Asia, where access to newer and more expensive vehicles is limited. &nbsp;</p><p style="text-align: justify;">The shift towards electric vehicles is expected to take longer in these regions, as there are still significant barriers to adoption, such as limited charging infrastructure and high upfront costs. &nbsp;</p><p style="text-align: justify;">For many businesses and individuals in these regions, used diesel-driven trucks will remain the most practical and affordable option for some time.&nbsp;</p><p style="text-align: justify;">It is worth noting, however, that the acceptance of used trucks in all regions will likely depend on the quality and condition of the vehicles. &nbsp;</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 14pt;">Used Trucks Vs. Electric Trucks</span>&nbsp;</h2><p style="text-align: justify;">As electric vehicles become more widely available, customers may become more selective in their choice of used trucks, preferring those with higher fuel efficiency, lower emissions, and longer lifespans. &nbsp;</p><p style="text-align: justify;">As a result, it may become more difficult to sell older, less efficient models, particularly in regions where environmental regulations are becoming stricter.&nbsp;</p><p style="text-align: justify;">Overall, the acceptance of used trucks will likely change significantly in the coming years as the shift toward electric-driven vehicles continues. It will be interesting to see how this trend plays out in the years ahead and how it will impact the global used truck market. &nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;"><span style="font-size: 10pt;"><em>This article was contributed by our expert <a href="https://www.linkedin.com/in/ralph-plavac-99b87b201/" target="_blank" rel="noopener">Ralph Plavac</a></em></span><br />&nbsp;</p><p style="text-align: justify;">&nbsp;</p><h3 style="text-align: justify;"><span style="font-size: 18pt;">Frequently Asked Questions Answered by Ralph Plavac</span></h3><h3 style="text-align: justify;">&nbsp;</h3><h2 style="text-align: justify;"><span style="font-size: 12pt;">1. How will the acceptance of used trucks be influenced by the quality and condition of the vehicles, particularly as electric vehicles become more widely available? </span></h2><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">The future presence of EEV trucks can give an additional usage period for used and older diesel trucks if the truck's condition is good. It means that during the usage period, the customers should do all necessary services for the truck and keep it in good shape to save the value for future operation. &nbsp;</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">2. How do customer preferences and perceptions regarding electric trucks' reliability, maintenance, and performance compared to traditionally used trucks impact their acceptance in the market?&nbsp;</span></h2><p style="text-align: justify;">In my opinion, the main factor for all the topics in this sentence is the battery (batteries). How long do the OEMs promise to have the battery full power? What impact will fast loading have on battery lifetime? That will decide on customers' trust in that technology!&nbsp;</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">3. How do sustainable practices in the maintenance and repair of used trucks contribute to overall sustainability?&nbsp;</span></h2><p style="text-align: justify;">Care about your truck - is the secret behind it. &nbsp;</p><p style="text-align: justify;">If you look at Europe, customers' usage is about 4 to 8 years today before the truck is exported to other regions/continents in the world. Looking at South America, you will find a different picture: &nbsp;</p><p style="text-align: justify;">Here the usage extends to more than 15 years! &nbsp;</p><p style="text-align: justify;">So, if the service is done correctly, and parts are exchanged, when necessary, the usage can be extended by double in Western Regions compared to today's situation! &nbsp;</p><p style="text-align: justify;">This will help overall sustainability and contribute to the customer needs.&nbsp;</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">4. Are there any industry trends or innovations shaping the used truck market?&nbsp;</span></h2><p style="text-align: justify;">Honestly, I do not know. &nbsp;</p><p style="text-align: justify;">There are too many factors that will influence the markets. &nbsp;</p><p style="text-align: justify;">How fast can a region switch to EEV and the therefore necessary electric loading capacity environment? &nbsp;</p><p style="text-align: justify;">When will a country define and implement new exhaust regulations? What are the import and export regulations in the world? &nbsp;</p><p style="text-align: justify;">If we come here to a clearer picture, we will figure out what will happen to the used truck markets.&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p>