Volvo truck shipments climb in April, led by Asia

World number two truck maker Volvo said on Wednesday deliveries of its trucks rose 42 per cent year-on-year in April as markets, bouyed by strength in Asia, swerved out of the worst plunge in demand in decades.

Volvo, which sells trucks under the Renault, Mack, UD Trucks and Eicher brands as well as its own name, said shipments rose 14 per cent from a year ago in Europe while they climbed 27 per cent in North America.

In Asia, where the upturn has gained more traction than on both sides of the Atlantic, deliveries surged 104 percent from a year ago and the group's Volvo Trucks unit said it was gradually raising production to meet the better demand in Asia and Europe.

Truck markets across the world suffered a steep plunge in demand last year as the global financial crisis ended years of easy credit to fund vehicle purchases and sent economies around the world into tailspin.

The highly cyclical heavy-duty truck market has stabilised in recent quarters amid a broader economic recovery, with demand showing signs of coming off the unprecedented lows hit a year ago, especially in emerging markets in Asia and Latin America

Volvo, whose truck shipments grew in February for the first time since before the financial crisis, swung to a profit in the first quarter on the back of deep cost cuts and the tentative recovery in demand.