Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 943

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 943
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 for most consumers. Consumers will take advantage of falling loan rates or lease vehicles at lower rates. •Climbing consumer confidence, greater spending and strong disposable income will also encourage individuals to trade up to more expensive and luxurious vehicles, boosting revenue and profit. •Similarly, people will travel more, hastening vehicle fleet replacement cycles. Consumers will purchase more EVs and hybrids as manufacturers expand vehicle sustainability portfolios. Rental and taxi companies will also purchase new vehicles to replace outdated models more frequently. Manufacturers will benefit from rapidly expanding market acceptance •Consumer sentiment will increasingly favor sustainability through the outlook period, leading to greater market acceptance for hybrid and electric vehicles, especially as prices steadily decline and companies deliver “economy” models to pair with luxury offerings. •Continued tax credits and rebates will pile onto lower prices, creating a significantly wider addressable consumer base. Most tax credits for electric vehicles will extend through the outlook period to 2032. •Similarly, infrastructure spending for charging stations will alleviate major consumer concerns regarding charging accessibility and easy and inexpensive access to electricity. Even so, charging infrastructure will Heavy Duty Truck Manufacturing 7 Industry Performance Global heavy-duty truck manufacturing’s revenue has been falling at a CAGR of 5.0% over the past five years, including an estimated 1.7% growth in the current year, and is expected to total $345.7 billion in 2023, with profit set to reach 6.9%. Volatile commodity prices influence profitability •Steel and aluminum prices, two major components in truck production, have been volatile and increased during the period. •When these costs rise, manufacturing costs also increase, hurting profit. BRIC nations’ performance is vastly different from that of developed countries •Most trucks manufactured in BRIC countries are for domestic use or are exported to other emerging economies. •The COVID-19 pandemic led to economic effects of varying degrees globally, with Brazil, India and Russia experiencing sharp economic contractions in 2020. ____________ 7IBISWorld Industry Report C2532-GL, Global Heavy Duty Truck Manufacturing, September 2023. Annex D-2-9 •While China suffered somewhat, the zero-covid policy contributed to lower productivity during the lockdown period, decreasing its contribution to the industry. •Aside from COVID-19, the Ukraine-Russian war reduced Russia’s production volume, contributing to lower industry revenue. The industry has been characterized by high merger and acquisition activity •Consolidation increased as companies realized the benefits of merging, which include sharing technology, increasing market share,