VW’s Traton Group to invest 1.6 billion euros in electric mobility

The TRATON GROUP is systematically preparing for the transition to electric drives. The commercial vehicle manufacturer has now decided to invest a total of 1.6 billion euros (Rs 13,227 crore) in research and development for e-mobility by 2025. An e-mobility investment of 1 billion euros (Rs 8,267 crore) had been planned originally over this period.

At the same time, TRATON is scaling back investments in conventional drives for these to make up less than one-fifth of its product development in 2025. This means that by then, the share of product development dedicated to electric mobility will have doubled.

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

“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.

The TRATON GROUP brands have already 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 date. 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.

When it comes to alternative drives, TRATON’s main focus is on battery electric vehicles. Nevertheless, hydrogen technology may well come into its own in niches. Most of the time, pure electric trucks will outperform their hydrogen counterparts as the more cost-efficient and eco-friendly solution for trucks, 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.