Truckmaking Giants Favour Shareholder Payouts Over-Investing into the Zero-Emission Transition

Major European truck manufacturers are increasingly prioritising shareholder returns over investing in the transition to zero-emission vehicles, risking their competitiveness in the evolving market. Despite the European Union’s introduction of CO2 standards for trucks, with progressively stringent targets set for 2025, 2030, 2035, and 2040, many truckmakers have called for a reopening of these regulations. They argue that external factors such as public charging infrastructure and road toll policies hinder the adoption of zero-emission trucks, while largely overlooking internal challenges like high vehicle costs and limited driving range, which remain under their control. A recent report analysing annual financial data from 2019 to 2025 reveals that shareholder payouts now exceed research and development (R&D) spending for the first time in several years. For example, PACCAR, owner of DAF Trucks, allocated over 8% of its revenues to shareholder rewards in 2025, five times more than it invested in R&D. Similarly, Volvo Group increased dividend payments while cutting R&D expenditure, with only a fraction of this investment directed towards low- and zero-emission projects. Daimler Truck also plans to boost shareholder returns through dividends and share buybacks, even as it reduces spending on battery and hydrogen technologies in some markets. In contrast, TRATON, the parent company of Scania and MAN, has maintained a stronger focus on R&D relative to shareholder payouts, although its investments remain split between electric and traditional diesel technologies. Notably, Scania’s recent €2 billion industrial hub in China highlights the company’s engagement with sustainable transport innovation, yet the facility’s emphasis on diesel engine production suggests a cautious approach to electrification. IVECO Group stands out as the only major manufacturer consistently investing more in zero-emission technologies and R&D than in shareholder distributions. The current approach of European truckmakers could jeopardise their position in the global market, particularly against Chinese competitors where electric trucks accounted for 16% of new sales in 2025. Rather than accelerating the development and production of zero-emission vehicles, European firms have relied on incremental improvements in conventional technologies. With new entrants preparing to launch heavy electric trucks in Europe, the established manufacturers face growing pressure to prioritise clean technology investments or risk losing market share both domestically and internationally.