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Total Cost of Ownership Is Most Important to Europe’s Truck Buyers

Truck makers should explore new ways to stand out as all brands approach a common cost threshold.

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Total Cost of Ownership Is Most Important to Europe’s Truck Buyers
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Bain & Company’s 2018 survey of Europe’s truck market finds that, for buyers of commercial vehicles, total cost of ownership (TCO) remains the most important factor in the purchase decision. Price or monthly lease rate, residual value, reliability, fuel consumption, and costs for service and maintenance are buyers’ key purchase criteria. But as TCO performance for European truck brands converges, it’s becoming more challenging for truck makers to differentiate themselves. Once the TCO threshold is met, buyers are looking for other ways to choose among brands, including the efficiency of the omnichannel sales journey and access to alternative drivetrains. For Europe’s truck makers and dealers, the key to winning lies in developing new ways to stand out.

Magnus Burling and Johan Lundgren are partners with Bain & Company in Stockholm. Jörg Gnamm and Eric Zayer are partners in the firm’s Munich office. All four work with Bain’s Global Automotive practice.

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