Paccar To Adopt European Strategy In Brazil, But BMI Warns Of Growing Competition

US truck maker Paccar is planning to invest close to US$200mn towards building a truck plant in Brazil in the next two years, Reuters has reported. BMI believes Paccar's move is aimed at tapping into the Brazilian truck sector's growth potential. We expect truck sales to grow over 55% between 2011 and 2015, with 265,400 units shifted by the end of the forecast period. We are, however, sceptical about possibilities of early gains for Paccar, given the domination of European majors Mercedes-Benz and MAN, which together occupied over 76% of the Brazilian truck market in 2010.

To read the full article, please choose one of the following options: