COVER STORY
themselves. Today, those second- or third- generation businesses are run by people coming out of universities. They’re talking languages which are more accounting- based - total operating expense, return on investment.” Competing in a changing market That shift is particularly relevant in a market facing growing pressure from lower-cost competitors. Scania acknowledged that Chinese truck manufacturers have significantly altered the competitive landscape over the past several years, particularly through aggressive upfront pricing strategies. “What’s happened in that space is that the alternative brands specifically have come in and taken market share from the Europeans,” Erasmus said. However, rather than competing directly on purchase price, Scania says its strategy is focused on long-term efficiency, support, uptime, and residual value. “We have to be the best - the most efficient vehicle along with the best services,” Bergvall explained. Uptime and connected services Service and uptime form a major part of that offering.
Looking beyond upfront cost For operators, however, the conversation extends well beyond technical specifications. Erasmus stressed that efficiency ultimately translates into profitability. “If you buy a Scania, it will start making money, not costing you money,” he said. The company repeatedly returned to the idea that transport operators are increasingly evaluating vehicles based on
lifecycle value rather than upfront purchase price. “I don’t like focusing on upfront price because I think the lifecycle of a truck and a transporter’s speed is more significant than paying an upfront price,” Erasmus noted. According to him, changing customer behaviour is reshaping the industry. “Back in the 1990s, we were dealing with people who started the business
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CAPITAL EQUIPMENT NEWS JUNE 2026
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