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VW’s Traton Group: To inves1.6 billion euros in Electric Mobility

Updated: Mar 25, 2021

TRATON GROUP, the commercial vehicle manufacturer, is investing a total of 1.6 billion euros (Rs 13,227 crore) in R n D for e-mobility by 2025. : earlier an investment of 1 billion euros (Rs 8,267 crore) had been planned for the same period.

TRATON, is a subsidiary of Volkswagen AG, is one of the world's leading commercial vehicle manufacturers, and has brands MAN, Scania, Volkswagen Caminhoes e Onibus and Rio.

This will be systematically preparing for its transition to electric drives.

Simultaneously, TRATON will be scaling down investments in conventional drives: these will make up less than one-fifth of its product development in 2025. While the share of product development for electric mobility will have doubled.

“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 Grundler, CEO of TRATON SE.

By TRATON groups e-mobility plans are :

  • Electric vehicles to be 10% of Scania’s European unit sales by 2025;

  • Half of MAN’s new buses too by 2025.

  • By 2030, every second vehicle sold by Scania will be Electric.

  • And at least 60% of MAN’s delivery truck and 40% of the long-haul truck by 2030

The group will focus mainly on Battery Electric Vehicles. However, hydrogen technology, which is the group's niche, too could attract more focus.

The Pure Electric Trucks are expected to outperform their hydrogen version on parameters of cost-efficiency and eco-friendliness, especially long-haul trucks.

“This is because compared to electric trucks powered by batteries alone, hydrogen trucks have one major drawback: just one-quarter of the energy output is ultimately used to power the vehicle, with the other three quarters lost along the way from the energy source to the road. This is the other way around for electric trucks,” explained TRATON CEO Matthias Gründler.


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